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Photo#27017
tiny black-banded green caterpillar - Fascista cercerisella

tiny black-banded green caterpillar - Fascista cercerisella
West Point on the Eno city park, Durham County, North Carolina, USA
July 3, 2004
That's my arm in there for scale. Taken at the 2004 Festival for the Eno. The caterpillar lowered itself out of the forest canopy and onto my arm.

Postscript
I showed this photo to Tennessee naturalist Dean Edwards, who has a thing for Micro-Lepidoptera
http://www-chaos.engr.utk.edu/%7Ekde/birds/pics/KDEpics.html
He suggests that this looks like the caterpillar of a Redbud Leaffolder, Fascista cercerisella, of the family Gelechiidae. Images of this species on-line do look consistent, but I cannot find photos of any other species of this genus, not even many of the entire family...
http://www.ipm.msu.edu/CAT04_land/L08-27-04redbudleaffolder.htm
http://www.forestryimages.org/browse/detail.cfm?imgnum=1430120

 
I agree that this is probably
I agree that this is probably the redbud leaffolder. At least, this looks an awful lot like the larva we always see folded into the leaves of our redbuds here, and I have IDed those as redbud leaffooders. Also, the behavior of suspending itself on silk (to escape when disturbed) sounds right.

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