Hammer Coral Sick?

Live Rock

Reefer
Hi my hammer coral has this weird polyp chunk protruding out if it.
Any ideas on what it is?
 

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It looks like dead tissue, and it looks like you can see a little of its skeleton too. Has anything fallen on or damaged that spot recently?
 
No, except my cleaner shrimp crawled on it a few times.

When I bought it from my lfs the store manager said that the coral was just recently shipped from the mariculture facility last week. They could not put the coral on hold, so I bought it, and this happened. Also, some sort of white fuzzy stuff has grown on the skeleton ever since I bought it.
 
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