I'm going to have to flip flop again. With the added details of this,
"It's in a
low flow area that tends to collect debris… I had a lot of live rock that shed chunks of coraline,
so theres a lot of little pink pieces in my sandbed.",
coupled with these,
“Noticed last week,
shortly after moving some frags around…” (exposed to light, just starting to color up.),
"I can move and stretch it, but
always comes back together, no loose pieces." (does have structure.),
and it looks like it has spicules in the pictures, (any apparent osculum yet?)
….I now have to dive back into the sponge camp.

Okay, enough sleuthing. I am curious as to what it turns out to be.
@dugthefish, you have eyes on, hands on, what do you think it is? If you haven’t removed it could you please post another picture in a few weeks? Thanks.;Bookworm