ive had mine do that before...give it some more flow...
Its not starving, its all lacerated.
When you put in the tank did you hold it upside down? All thin fleshed corals like that, i.e. torch, hammer, frog spawn, scoly, duncans, dendros need to be pulled out of water upside down. This prevents the flesh being cut up my the sharp skeleton below. The weight of the skin is enough to do damage.
Ive had one that was almost completely destroyed come back. Looked just like yours. now it looks like this.
mine was placed under a vortech. I think it may have helped that the strong undertow pulling up on the flesh.