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Beetle or caterpillar frass and silk hiding the home of a boring caterpillar or grub. Very likely a Cerambycidae beetle larva (shown in image 2) it is about 8cm across with leaves which have possibly been drawn into the structure for food
This is the crook of a bloodwood tree which has grown for a short time beside a pathway leading to an oval
After noting the little nest for weeks and seeing nothing moving it was opened. The grub or caterpillar seems to have been eaten or parasitised rather than hatching or passing into an adult stage.