I don't have any experience with this, but according to the "Anemone Fishes and Their Host Sea Anemones" book, they do this as juveniles but eventually leave their anemone hosts as they mature. How old is your Three Spotted Damsel?
it means your local fish store, these fish will get very agressive and will kill many tank mates. i have a breeding pair and i cannot put anything at all in the tank with them, they have even killed a trigger that was twice their size.
