Don't panic. It's a sleeping cocoon. I'm not sure what the term is actually but some members of the wrasse family will encase themselves in a form of mucous when they sleep. Do a search on the 'net and see if this is what's happening (that's my guess though). Basically it masks their scent or something like that so that predators can't make an easy meal out of a sleeping fish.
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-- Tony
My next hobby will be flooding my basement while repeatedly banging my head against a brick wall and tearing up $100 bills. Whee!
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