This lichen species is perhaps the record holder for English common names: peppermint drop lichen, candy lichen, and spraypaint (from Brodo’s Lichens of North America) are all quite descriptive and appropriate.
However, here in British Columbia and nearby Washington & Oregon (and true, a few places elsewhere), I’ve seen four variations on a different theme: fairy barf (and again), fairy puke, fairy vomit, and, at UBC’s Beaty Biodiversity Museum, fairy upchuck:
The derivation of the scientific name is somewhat more prosaic: Icmado- means “moisture” and -phila, means “loving”, while ericetorum refers to being “of the heathlands”. Indeed, it does grow on peat, as well as rotting logs, humus, turf, clay, dead mosses, and other substrates, particularly in shaded areas. Distribution spans much of boreal and montane Europe and North America (with occurrences extending into rainforests and arctic habitats). The species has also been photographed from Asia.
But, what are you looking at? The pinkish bits are apothecia, the fruiting bodies which will eventually release spores. The main body of the lichen (the crustose thallus) is the mint-green structure–its analogous to the vegetative parts of a vascular plant (e.g., stems, leaves). Nothing to do with fairies partying until the early hours of the morning, I suppose.