This is known as white death in the reef community. I have done countless hours of research on what causes the fungus and how to cure it. This fungus typically starts in the live rock under the zoas and is known to be black band disease. If you took cutters and cut into the rock under the polyps you would see that the rock is black and decayed.
Anyhow, take some big cutters and cut into the rock under the zoas making sure that you are cutting off the rock and the infected zoas.
After you have done this, take 100 percent peroxide and pour (not dip) it over the infected area and the remaining colony. Leave the peroxide on the zoas for about 30 second, no longer than a minute.
Take the colony to your sink and run tap water (about the same temp as your tank or cooler) over the colony rinsing it and lightly scrubbing it with a soft tooth brush. Scrub it and run it under the water for about 1 -2 minutes.
Then place it back into your reef or sump in a high flow area with low to medium light. High flow is very important.
I have worked with this disease for years and this is the best method I have found to cure it. Otherwise the colony will be dead in no time.
It does take time to do this process but for me it cures the disease 9 times out of 10.
Make sure that you wear gloves during the process and the most important step is to get the decayed rock and zoas off of the colony.
Gary