John, I know from other posts that you have (or had) a fairly high fish load in your tank, what are your water parameters, particularly
nitrate, looking like? How long did you quarantine it for? How did you
acclimate it to your display tank?
My first guess would be light shock from too quick of an
acclimation or dumping it in the tank with the lights. Did you quarantine it under the same or similar illumination as your display tank? (I only use normal output bulbs for quarantine, but the brightness is roughly the same since my quarantine tank only has about 7 inches of water).
My second guess is elevated
nitrate.
BTAs can handle elevated
nitrate levels better than most anemones, and usually quite a bit more than most aquarium literature would lead you to believe - or at least they'll tolerate it long enough for you to fix it. I've seen a few other people's
BTAs retract into dark areas before and the common factor in each case was high
nitrate levels.
Nitrate shouldn't stay above 10ppm for extended periods of time (or when still stressed from moving/quarantining/acclimating. I know you mention your carpet is fine, but it may have grown accustomed to the
nitrate over a period of weeks (or it may be getting poisoned to death slowly). My carpet folds up and generally acts weird if I let our
nitrate get above 10ppm.
PS. By 10ppm I mean 10ppm using a salifert or other "clear-to-purple" test, or around 40ppm using one of those 2-part "yellow-to-red" liquid tests (Aquarium Pharm. "Master" kits, etc)