A term used to describe the way marijuana looks after it is unwrapped when you screw up rolling a joint. The marijuana without the paper, ends up looking like a green caterpillar.
Lindsay- "Oh Manny, you fucked up the joint, re-roll it!"
Manny- "damn you're right (as manny unwraps the joint)"
Andy- "Dude, that bud looks like a caterpillar now!"
Lindsay- "Yeah! like a caterpillar in its Cocoon!"
Andy- "No way dude, it does!"