Hmmm... I generally consider Xenia to be one of the less aleopathic (Coral chemical warfare) softies, and mushrooms to be one of the more aggressive ones, but there are so many chemical interactions amongst the critters we keep, anything is possible.
If this does turn out to be true, I might hafta put some Xenia in the "Mushroom Corner" of my tank to see if it can clean the area up for me! :wink:
Short answer = Whenever 2 corals are placed near or touching each other, there's a distinct chance that one or both of them will be adversely effected by attacking the other or by defending itself...