Caterpillars or larvae of certain moths possess stinging hairs. These sharp hairs or spines are either hollow, connected to poison glands (venom flows on contact), or similar to glass fibers (hairs break off in skin easily) sometimes causing pain like a needle prick. Depending on the individual, reaction to the sting ranges from mild, with local reddening, swelling, burning and itching to severe pain. Hypersensitive persons may experience severe swelling, nausea and generalized systemic reactions, occasionally requiring hospital treatment. In severe cases, entrance of hairs into the eye can cause blindness.

Stings generally occur when accidentally brushing against one of these caterpillars or attempting to remove it by hand from clothing or on the body. Fortunately, stinging hair caterpillars are not a widespread problem (occur in small numbers). Complaints occur in late summer to early autumn and most are found on corn leaves, vegetable plants, shrubs and trees.

Treatment for Caterpillar Stings
Diagnosis is usually simple since a rash generally breaks out where the hairs or spines have made skin contact. Immediate application and repeated stripping with adhesive or transparent tape over the sting site may be helpful in removing broken hairs or spines. Washing the affected skin area thoroughly with soap and water may help remove irritating venom. Prompt application of an ice pack and a baking soda poultice should help reduce pain and swelling. Household analgesics, such as aspirin, appear to be ineffective for reducing pain and headache. However, oral administration of antihistamines may help relieve itching and burning.

Prompt referral to and treatment by a physician should be made when severe reactions are evident.

Prevention
Occasionally, these stinging hair caterpillars may drop out of trees onto people, crawl into clothing on the ground, occur on outdoor furniture or sting when brushed against on plant foliage. Be careful when attempting to brush them off. Never swat or crush by hand. Remove them carefully and slowly with a stick or other object.

Individuals, especially children, should be cautioned about handling or playing with any colorful, hairy-like, fuzzy caterpillars since it is sometimes difficult to distinguish between harmless and venomous insect larvae. Never handpick these hairy, fuzzy or spiny caterpillars except with heavy leather gloves if necessary. Wear long sleeve shirts, trousers and gloves when harvesting sweet corn in late-summer and early-autumn to reduce possible stings.

http://ohioline.osu.edu/hyg-fact/2000/2130.html

http://medent.usyd.edu.au/fact/caterpillars.htm

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