Yes, I have found them to be fairly toxic that way. We weren't trying to frag them so much as remove them. Made several things unhappy, including me lol.
The reason I ask is because I am still trying to figure out why my seahorses died. The only thing different that I had done was frag some mushrooms in the tank. I actually cut them off of the rock while they were still in the tank and gooey crap went all over the tank. Three days later my seahorses died.
I didn't think mushrooms would kill fish, but it was the only thing I could think of. After I did a water change the one seahorse I have left looks great. It is weird because he is the one I have been scared of losing since I got him. He wasn't as active as the others were and he changes colors all the time. Since the others have died he has turned bright yellow and is more active. hmm...
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