archman:I'll go with Polly; that's the holdfast of a gorgonian coral. Probably from a sea whip. The colors are faded due to light attenuation from depth.
The genera from this group don't bleach in a visible way. The color is intrinsic to the skeletal spicules in the outer tissues. They'll retain their color well after death. I've got dried specimens in my lab.
Woo Hoo! Arch, thanks for the validation that I haven't forgotten everything I learned in Marine Bios!!!!!