1.5 years is pretty old, anemones do need light that is similar to coral. I like to change mine out ever 9 - 12 months. What bulb are you using.
I did notice that this thread was old, but seen that it was unanswered. So thought it may help you or someone else.
How old are your bulbs? It sounds like it may be stretching to reach light and getting twisted. A 10g is pretty small for anemones.
Anemones breed by releasing gamets into the water. What you are seeing is not breeding.
They also reproduce by cloning. They will split themselves in half...
There is always a chance of survival. Many anemones have survived this. Give it a few days and hopefully it will improve. You will need to cover your intakes to protect the anemone. Here is a helpful website: http://www.karensroseanemones.com/coverpowerheads.htm
