Leather coral

[Reefgazer]

Purchased a leather coral yesterday and once I put it in my tank it's polyps came out however I woke up this morning and the polyps where not showing and there appears to be a mucus coming from it. What is happening?

 

[Flreefer]

Sounds like its just sloughing. Just as we shed skin, Learhers shed their outer layer from time to time. They shrink down and look horrible, sometimes for a couple days, sometimes for over a week.
As long as all your water parameters are at acceptable levels, this is probably all that it is.
At night, Leathers always shrink down as well, so first thing in the morning, they may not look their best. They need the light, to open up and expand their polyps.
Best of luck with it!