Circumstantial evidence, mostly morphological and ecological, points to ten different mushroom host species for up to fifteen species of the mycoparasitic genus Squamanita. Here, molecular evidence confirms Cystoderma amianthinum as the host for S. paradoxa, a sporadically occurring and rarely collected mycoparasite with extreme host specificity. This is only the second study to use molecular techniques to reveal or confirm the identity of a cecidiocarp of Squamanita species. Phylogenetic analysis of combined nuclear ribosomal RNA genes suggests the monophyly of Squamanita, Cystoderma, and Phaeolepiota, a clade referred to as the tribe Cystodermateae. If true, S. paradoxa and C. amianthinum would represent a relatively closely related species pair involved in a mycoparasitic symbiosis.