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From: www.tiscali.co.uk/reference/
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fungi

Coral-spot Fungus Coral-spot Fungus
Nectria cinnabarina
Up to 2mm across

Tiny but distinctive fungus which form clusters of orange-pink inflated cushions and cinnabar-red lumps on the dead and dying twigs and branches of deciduous trees. It is widespread and often very common; can be found throughout the year.