They do retract when anything comes close, as well as shovel food into their center with each branch. I have at least 10 of these starting to grow from my rock. I was a little worried since they all started growing within the same week. I was worried an invasion was imminent and was going to be forced resort to my laser-firing coral species I have growing in my fuge. Thanks for the help!
I have these in my tank as well and they had spread into several areas. I do remove them only from the areas where they are encroaching on my corals, but leave the rest. They are cool!
Hydroids are very bad for a tank. They can sting corals and eventually kill them. One of my friends had to take down his 380 because hydroids kill all of the corals in the tank and completely took over the live rock. But those hydroids looked much different. And I have some of the ones that your talking about and they dont seem to grow nearly as fast.