Ya agree that just looks like some sponge by his den or something. What other fish are in the tank? I have one of these guys and he is a bit shy but he comes out at feeding time. He is easily scared when he is out though, and any aggression from other fish, or unexpected movement outside the tank will send him scrambling back into his den. Not sure if others are like mine, but mine is also pretty much blind. I think he can discern light and dark, as well as motion, but when he is out in the lights he appears to stumble around a lot trying to find the food.
I feed mine PE Mysis along with my other fish, but I always have to get the food fairly close to directly in front of him, away from other fish and where he can see it. I have seen him sitting in his den waiting for food to float by his den and then snatches it up, so yours may be doing that as well.