The Psychedelic Mushroom of Eternal Chaos is one of a trio of monsters1) new to Season 1. This foul monster attacks with Trippy Love Magic which averages 50 points a hit. If you lose to this daemonic creation, it will cost you 15% of your total experience. Unfortunately, after facing this monster, the experience loss is the least of your problems.2)

1)
The Giant Tattoo Mutant and the Mighty Magpie that are rumored to lurk in the jungle near Kittania complete this unholy trio. The Psychedelic Mushroom of Eternal Chaos is either harmed by or attracted by Hat Size, but no one can remember which while editing this wiki page. If you must have a large hat, check in Improbable Central. Look for the mushroom anywhere, and you'll have about the same chance of finding it, regardless of location. Rumors that Caveman Joe is another monster added for Season 1 should be disregarded - Caveman Joe was in the pilot.
2)
Just look at Bortwood.