I Found A Cocoon On The Ground . I found a caterpillar that had yellow and whit fur with random longer black. Two seasons of intense cankerworm infestations can kill a mature hardwood. I live in Wisconsin and found a cocoon on the ground in my backyard from www.reddit.com The butterfly story (author unknown) i was jogging one evening in the park and came to rest, as was my custom, by a large rock. Insect cocoons that are found underground hummingbird moth. Cocoons are not always attached to something.