I have a pink nipple chalice that seeks to be 'wilting'.  I've moved it into light and out of light over the pas month and still continue to see skeletal tissue.  I have another chalice near by that looks like this:

 

I also have an alian eye chalice next to these that is doing great.

 

What am I doing wrong or what can I do differently?

What's your lighting set up? Tank params OK?

What are your water parameters at? I know that higher phosphates and or nitrates can cause some tissue decay. Also, if you have low calcium and/or alkalinity, you can also have problems. In fact, I had a supernatural cap that did a similar thing when the dkH dropped in the tank. low dkH and pH cause problems for some corals because of the acidity of the water. Your lights might be ok. Just another idea to look into. My drop came pretty quickly in alkalinity. I was not sure why my supernatural cap was dying until I took my water readings and noticed a major drop over only a couple days.

Hope it helps.

I too am battling chalice health in my tank. All my other LPS is growing like weeds, but the few chalice pieces I have don't seem happy. I have tried moving them around the tank to all kinds of different lighting and flow and nothing seems to be getting any better. If you find the secret to get that thing to re-cover please share it with the rest of us.

Feed,feed,feed.

I am using LED's. Tank parameters were all in check the other day. I will test them again today. I've been spot feeding corals Coral Frenzy and Reef Chili. Should I use something else?