I had one for quite awhile, and sadly had to find him another home. He never touched corals, but as he very quickly grew, he started attacked other fish that swam past his "house". You would hear him chatter his teeth and the odd time he did get a fish. He ended up being very mean and I wanted a peaceful tank.
As someone else mentioned, Picassos dig A LOT. They will fill their mouths full of sand and go spit it out all over everything. I don't know why they can't just spit it out in the sand bed, but it seems they enjoy being artistic with how the disperse it. Mine also never touched shrimp.
They are very interactive fish and a lot of fun to have, despite their short comings.
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