Megalopyge opercularis. In Texas these caterpillars are commonly known as “asps”. When an asp moth caterpillar rubs or is pressed against skin, venomous hairs stick into the skin causing a severe burning sensation and rash.
I saw one of those on my oak tree in Arlington. I didn't touch it because I didn't know what it was, but when I figured it out, I was sure glad I didn't mess with it.
