Bagworm

Caterpillar chewing a hole in a leaf, little by little. Starting at the top and nibbling all the way down to the bottom. Little segments of leaf fall around the rim of the cocoon, stick and become incorporated into the cocoon. Silk lined cocoon to 4cm, consisting of dried leaf pieces and twigs. When disturbed it retracted into the cocoon, remaining anchored to the leaf via single point (pic 2)