I found out that this curious caterpillar is a species of moth. It is in the genus Synchlora.This kind of caterpillar attaches bits of flowers to it's self for camouflage.
It is well adapted to this type of behavior, as it has tiny bundles of spines protruding from its back, to which it fastens silk it uses to tie down the petal pieces.
It appears able to sense when the pieces need renewing. Because the larva carries no vase on its back, the pieces wilt with time. The larva renews them at intervals, ensuring that its protective cover remains fresh and appropriately floral in appearance.
When the larva pupates it crawls from the flowers to a more central location on the plant. There it eventually spins a loose cocoon. It weaves its petal cover into the fabric of the cocoon, and as a consequence blends in beautifully with the background.
The delicate moth that emerges from the cocoon is a pale yellowish-green.
Here is an example of an adult of the species Synchlora aerata:
References:
Wilderness by Thomas Eisner
