Nope, when hammers lash out with sweeper tentacles, they modify the tentacles they normally have. Basically they make them long, stringy, flexible, and pack them with nematocysts. Then the elongated tentacle hits something and digests it on the spot with the extra nematocysts.
What you're seeing there looks like the expulsion of zooxanthellae algae. Euphyllia will often do this when brought into an appropriately lit home aquarium. Chances are, your lights are more powerful than those at the LFS (at least at the surely shallow depth of the nano) and as such, the coral gets more light. With more light, the zooxanthellae do not have to do as much work of photosynthesis to sustain the coral, so the coral doesn't need them. And when it senses that it doesnt need that many zooxanthellae, it expels some. This is a very common behavior in newly bought hammers/frogspawn/torches. You may also notice a deflating of the tissue and a widening of the mouth when it expels the algae. This too is normal, so long as the coral re-inflates (usually between 30-60 mins later).