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Common Caterpillars are Dangerous to Touch!
Pittsburghers are warned to avoid handling or touching hairy caterpillars in their local region.-
Mature larva of the hickory tussock moth, Lophocampa caryae Cocoon of the hickory tussock moth
Although the vast majority of caterpillar species are harmless, a few species have hairs or spines that can sting, resulting in local inflammation and discomfort to hands and areas of sensitive skin. The mature caterpillars of one local species, the hickory tussock moth (Lophocampa caryae), are covered with fuzzy white-and-black hairs (setae) that can cause serious complications if they are accidentally introduced into the eyes. This most frequently happens to small children who have touched caterpillars with their fingers and unknowingly picked up tiny setae. These setae are microscopically barbed and stay attached to their fingers. When the child rubs his eyes, setae may enter the eyes and over time penetrate to a level where medical attention is required. The tiny hairs are grown by caterpillars in their final stage of development, and are transferred by the pupating larva to the outside of its spherical silken cocoon where they serve as a defense against predators. The cocoons are constructed under bark of trees, or under objects on the ground, and can be found from throughout the late summer, fall, winter, and spring months. The caterpillars are active during the late summer and fall, from July to October, but are most abundant in August and September. People should not touch or handle caterpillars or cocoons of this moth species, and in general should avoid handling any caterpillar that appears spiny, hairy, or fuzzy unless they know with confidence that it is a harmless species. The pictures above illustrate a mature larva of the hickory tussock moth, and a cocoon, both potentially dangerous to touch.
  
These pictures show other caterpillars that are extremely similar, but harmless.
Caterpillars are wonderful animals, and most of them are harmless. However, it is always best to admire them without handling. If you need to move them, scoop them into a jar or can, or let them crawl on a stick or other object without touching then directly.
  Apatelodes torrefacta

Acronicta rubricoma
Colocasia species Halysidota harrisii