That torch has brown jelly disease. It's thought to be a bacterial infection that effects LPS
. It's contagious also. The guy did nothing wrong breaking the skeleton with a hammer and/or chisel. Personally, I would have used a dremel and made a perfect cut, since euphyllia skeletons can be so brittle, but I doubt this is what caused the BJD. I would remove the torch, shake it in a bowl of tank water to remove the brown jelly, taking care to not get any in the water column, then perhaps a lugols dip.
Put it in an area of slightly higher flow when you return it to the tank.
You might be able to save it, but don't get your hopes up.