Man that would be mind boggling back then actually.
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The opposite of this is when Europeans encountered/heard tales of cotton, They interpreted the information of it being a plant based wool equivalent as there being special trees in the east which grew sheep as fruit. 
Wild.
I bet this dude wore glasses and they only somewhat corrected his vision because how else do you not just like look at it and see "oh it's like, a bug, but looks like a leaf, neat" when it has visible mandibles and shit
to be fair i think i would also make this mistake if it was my first time seeing a walking leaf
i mean, shit, i probably would too
Antonio Pigcheese