This species is native to shallow water in the northwestern Atlantic Ocean, between Cape Hatteras and the Bay of Fundy, where it makes a temporary burrow in soft sediment.

Under these conditions, the sea anemone extends its column and tentacles, perhaps to expose the largest possible area of epidermis to the water to increase oxygen uptake.

[5] A type of dermatitis with itchy red skin has been recognised in people who are exposed to the sand and mud flats around Long Island, New York.

Although H. producta had not previously been considered to be venomous to humans, exposure to these sea anemones was thought to be responsible for the irritating rash,[5] and this is now accepted as the cause.

The condition is known as "clam diggers' itch" or "ghost anemone dermatitis", and usually affects hands and wrists, ankles, knees and inner thighs.