Yup, they can propagate from flesh left behind. I have a 3" watermelon mushroom that seems to move a little bit every other week across my rock and wherever its foot was attached a new shroom sprouts. I have probably got 3 new mushrooms this months alone because of that (to the point where I almost want to start getting rid of some).
Earlier this month, about 3 weeks ago, I cut off a mushroom that was bothering some paly's and I thought I had got all of the flesh off; today there is a new little mushroom. I swear the shrooms in my tank are like that broom in Fantasia that keeps dividing into a million copies of itself.
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