As somebody who frequently crawls around in the woods peeking into damp crevices, and searching for bizarre life-forms, I have never seen this species in California, although it purportedly occurs across NA and around the world.
Anybody else seen it here on the Left Coast?
Here is another great photo of it up on MO, with a close-up of the little cups, spilling out fuzz…
http://mushroomobserver.org/image/show_image/134060?obs=63304&q=CM89