It is my understanding that corals shouldn't be added until the system is completely cycled and a little more mature, or even better, stable. Stability is key. Many of the LPS corals tend to be on the hardy side and may make it through cycling but it usually isn't recommended to add them before cycling is complete. It may not be very happy if your parameters are a bit off. Candy cane corals tend to like moderate flow and lighting, so make sure it isn't getting blasted by your lights or whatever pumps you have creating flow in your tank. You could do a large (30% or more) partial water change to bring down high nitrite and nitrate, though I am not completely positive that this is the problem, especially since I don't know how high they are. Our salt water critters are more tolerant of nitrite than their freshwater cousins. You could also add some type of bacteria (BioSpira, Dr. Tim's One and Only) to speed along cycling in your tank. It also may just need some more time to acclimate to your tank. Could any of your other fish or inverts be picking at it? This could cause it to close up too. I would definitely try to get your parameters in line, move it out of direct flow (if it is getting blasted), and make sure the lighting isn't too much for it and see if it inflates. I hope your coral gets better soon...it looks like it would be a real stunner!