Whats the origin of the torch? Aussie or Indo.
Needs some TLC! there's definitely something going on. There may be a pest thats aggravating it, however at this point a "pest type dip" will need to be used with caution as they are strong and can add to the stress the coral is already experiencing.
The best method Ive found to help with health related issues with torches, and all Euphyllia really, is as follows.
BJD/ Tissue Recsn
-- Brown Jelly and tissue recession
*Iodine alone will not stop it. It's a tiny bandaid.
1. 2 cups of tank water 1 capful of witch hazel (hydrogen peroxide is fine too). Swirl it around a bit to release the jelly. Dip for 15mins
2. 2 cups of tank water 1/2 package of furan 2. Same process.
3. 2 cups of tank water and iodine until it looks like lightly colored iced tea. Same process.
4. Rinse in tank water. Reintroduce to tank in low light.
-Separate dishes for each, don't combine.
-For brown jelly or extreme tissue recession, dipping back to back days may be required.
*For referene; I have a euphyllia dominant system with over 30 different variations.