Not likely pesticides are involved in this case. I've lived here for 48 years and have known most of my neighbors for many years. Pesticide use is not common here especially any sprays. People do treat the soil around their homes for termites and fire ants. A moth or caterpillar would be unlikely to come into contact with these pesticides.
Not sure if this is the case in your caterpillar but the green fluid, in some, is said to be toxic matter that the caterpillars spit out. e.g, insecticides sprayed on plants, etc.
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