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Black, White and Orange Furry Caterpillar (Milkweed tussock moth caterpillar)

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Milkweed tussock moth caterpillar
by: Moni

Anahita
Your caterpillar is a Milkweed tussock moth caterpillar.
This caterpillar feeds on milkweed as the name suggests. The eggs are laid close together and the larvae when they hatch feed next to each other until they get to the last couple of stages. They can defoliate any plant in the milkweed family.
This insect is found in the eastern half of North America.
Here are what the different stages look like - http://bugguide.net/node/view/433/bgimage?from=0

Remarks from Bugguide -
"POTENTIAL FOOD FOR: Red bats and big brown bats.
FAVORITE GAMBIT: Sounding gross. Literally. They don't taste gross, at least not to bats. But they deter their predators, which hunt by sonar, by imitating the high-pitched clicking sounds of certain other moths that taste so bad that bats steer clear.
BATS FALL FOR THAT?: A Wake Forest University study shows that they do.
From Smithsonian Magazine - August '07"

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