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Looking like miniature upturned woolly bells, these birds nest fungi were in small colonies on damp bark. The insides of these splashcups (peridia) were cream coloured and smooth and the free margins had a narrow rim. Some contained peridioles that were numerous and a pale brown (pic 3). Some of them were seen splashed out of the "nests" in the recent rains and can be seen as minute pale specks on the bark in pic 2.
Spotted on bark and leaf litter - Grampians National Park
Peridioles are sticky and they stick to the surface they land on and germinate from there, starting their lifecycle.