Looks like the beginning of hair algae to me. They love nitrates and phosphates. Algae like this is known to lock up certain nutrients which can cause misleading water testing, in particular nitrates and phosphates. Do you feed heavy? If so, cut back on your feedings to reduce nutrients in your water column. Also try to remove as much detritus and such from your tank, dust off your LR and run your skimmer wet. Water changes also can help, however, if the problem persists or gets worse an algaecide might help kill the algae to "unlock" those nutrients which are being locked out of the water column which should in turn reduce the problematic algae. Do you dose any form of carbon? Sometimes carbon dosing can feed bad algae if it's given in excess for periods of time...How deep is your sand bed by the way?