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I've known Pakistanis and Arabs from my time at school; they had a certain penchant for gullibility, they'd believe outlandish things and had little sense of humor. Since then I've read articles that support my initial observations, that's why I said there might not have been a caterpillar at all....or a harmless one. ForkinSocket is a better source of information on the Muslim mindset than I am but I think my observations will bear out.

Your story of the Brown Recluse spider gets attention. They are extremely poisonous and you're lucky not to have gotten bitten. I've never seen one but have seen the damage they do to their victims.

I don’t know for how long one could scare a captive with a scary looking caterpillar until the ruse gets stale. Maybe for like a few days or a week. Most superstitious - North Africans, although they don’t so much burn witches as they are very preoccupied with evil eyes & magic spells. Least superstitious - Levant Arabs. Palis, Lebanese, Syrias. The average one doesn’t take it that much further than reading coffee grounds in the bottom of the cup.

Most of the gullibility revolves around conspiracy theories, worrying about freemasons & secret societies, obsessesion with gossip & rumor. I think that affects not only all Arabs, but all of the Middle East. Armenians have impressed me as some of the most fixated on conspiracy theories.