What is a Jack O'Lantern, and how does it poison people?
Omphalotus illudens, the Jack O'Lantern, is a poisonous orange mushroom of eastern North America that fruits in late summer and fall. Dense clusters rise from hardwood stumps and buried roots, especially of oaks. It is common in towns as well as in the woods.
Its caps are bright orange and 3 to 20 cm across, and its sharp, crowded true gills run down the stem. Cut the flesh and it is orange too. The spore print comes out white to pale yellow.
People get into trouble when they pick it as a true chanterelle. The mix-up usually starts with a cluster that seems to grow from soil because its wood lies buried underneath. Checking the underside structure separates the two before cap color does, because chanterelles carry blunt false gills and rarely grow in dense clusters.
The poisoning is gastrointestinal, and its toxins include illudin S and illudin M. According to the North American Mycological Association's poisoning syndromes summary, nausea and vomiting usually start one to three hours after the meal, often with abdominal pain, weakness and dizziness. Recovery is usually quick, with most people well within about 12 hours. Severe vomiting can still need hospital care for lost fluids.
If someone ate a suspect orange cluster, getting help and keeping the evidence come before any attempt to name the species. Save leftover mushrooms, photographs and the meal time for the poison specialist. Those details give the specialist something firmer to work from than a description over the phone.

How do you identify a Jack O'Lantern?
Flip the cap before you admire the color. Jack O'Lantern gills are real blades with clear edges and spaces between them, and they run down the stem. That sharp, plate-by-plate underside is the first stop sign.
Next, inspect the base. Jack O'Lanterns often fuse together where they leave wood. Clusters that seem to grow from soil usually have buried roots just under the leaf litter.
If you are studying a specimen for identification, cut one open. The flesh is orange inside, so the mushroom looks convincing from above and fails once you handle it. Chanterelle flesh is paler, as the figure below shows.

Size can support the call. Mature clusters can spread across a stump with overlapping caps. Size alone never proves a mushroom either way, so it ranks behind the gills and the base.
Fresh gills can glow a faint green in full darkness, but the glow makes a poor field test. Gills, wood and orange flesh do the identifying. Mature caps drop a white to pale yellow spore print. That print supports an Omphalotus identification after the structural checks, yet it cannot turn true gills into safe food.
True blade gills, orange flesh all the way through, and a base fused on wood mean leave it where it grows.
The reject pattern
Where does Jack O'Lantern grow?
Jack O'Lantern is a hardwood decomposer. It feeds on dead stumps, buried roots and fallen wood, especially of oaks, and fruits when late-summer or fall moisture arrives. Every cluster marks wood underneath, whether you can see it or not.
Buried roots set the trap. Clusters at the base of an oak, or ones erupting from an apparently open lawn where a tree once stood, are usually feeding on buried wood. Those hidden roots explain why it surprises people in tidy gardens.

Note
Because it feeds on buried roots, a Jack O'Lantern cluster can rise from open ground near an old oak and still count as wood growth. Dig at the base to find the hidden wood before you trust the spot.
Omphalotus illudens occurs across much of eastern North America and Mexico, and in northern Europe. In California Omphalotus olivascens takes its place, and in southern Europe Omphalotus olearius does. Those relatives teach the same lesson about orange clusters on wood.
Leave the cluster in place unless a child or pet may eat it. The fungus breaks down the wood, which is useful cleanup work in a woodland. It still has no place in a mixed harvest.
Why cooking does not make Jack O'Lantern safe
Do not cook Jack O'Lantern mushrooms. Boiling, frying, drying, or mixing them with edible mushrooms does not make them food. Jack O'Lanterns reach kitchens when someone picks them beside a good edible and takes them for one.
Chanterelle recipes are safe only after every mushroom in the basket has passed the chanterelle checks, and cooking chanterelles starts from that point. Mixed baskets carry the real kitchen risk. If one orange true-gilled cluster went into the bag, separate and review the whole collection before anyone chops anything. Keep one whole specimen aside in case somebody needs it identified.
What if Jack O'Lantern grows in your yard?
Do not try to cultivate Jack O'Lanterns as a home project. They are poisonous, and the risk peaks when children, pets, or guests can reach the fruiting cluster. In a yard, the real food source is the buried root or old wood underneath.
Picking the mushrooms removes the visible fruiting bodies, yet the fungus stays in the wood below. Around a child or pet area, remove the cluster with gloves, bag it, and wash your hands. On a low-traffic woodland edge, leaving it to decay is usually fine.

Taxonomy & Naming
The species belongs to genus Omphalotus in the Omphalotaceae. North American guides usually call it Omphalotus illudens, while Omphalotus olearius is the classic European name and Omphalotus olivascens covers a western North American relative. You need the right name for records, yet the safety pattern stays the same for every one of them. Any orange Omphalotus cluster on wood with true gills is poisonous, so leave it alone.
The same toxins interest cancer researchers. Work on producing illudin M treats illudins M and S as anticancer lead compounds, and an illudin S derivative called irofulven has reached phase II trials. That research uses purified or modified compounds in the lab, and it gives no reason to eat any Omphalotus.