sea hares are not toxic. I think you're thinking about nudibranchs or sea cucumbers. But yeah they do decompose surprisingly fast and that could lead to water quality problems if the tank is small enough.
sea hares, sea cukes, and the like all need tanks that have nothing that might suck em up and/or chop em up; sponge or fine mesh over intakes is recommended. koralia's are notoriously bad for acting as blenders. remember that these guys are really soft and are really nothing more than sacks of flesh filled with goo. they can shift their shape quite easily.
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