Beautiful! This looks like a moth caterpillar to me, perhaps Acronictinae. It is a defensive posture, it is more common in Sphingids and also some Sawflies, but can be seen in other caterpillar species, such as Swallowtails, and others.
This is actually the namesake of sphinx moth. Whoever named them thought the upright posture of the head looked like a sphinx.
Love the colors! I had a caterpillar behave the same way. At first it was in its normal position but then when I got close and it knew I was there, it craned its head back like this.
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