My 2 brittle stars do this all the time (baloon up) ... right after feeding. Their bodies swell up quite a bit, much larger than the food they just consumed. I have never witnessed them expelling waste though.
I have 2 large ones in my tank. I have read all the warnings that they will go after small fish (and even seen the photos!), but the owner of a
LFS told me that he has never had a problem with them if you do one thing ... feed them. So about twice a week, I give them each a small piece of food. They are now trained to come out at every feeding - right to the front of the tank trying to climb up! If they don't get a piece of food within a minute or so, they go back to hiding. They are absolutely fascinating to watch eat. Though I am embarrased to admit, they do creep me out a bit (they way they wrap their arms around my finger and bring it to their mouths to see if it's food). But I know they provide an important service in keeping the tank clean.