From Dr. Richard Loyd. Cryptococcus gattii, formerly known as Cryptococcus neoformans var gattii, is an encapsulated yeast found primarily in tropical and subtropical climates. Its teleomorph is Filobasidiella bacillispora, a filamentous fungus belonging to the class Tremellomycetes. A new strain of hypervirulent, deadly Cryptococcus gattii fungus has been discovered. People can become infected with Cryptococcus gattii by inhaling the microscopic organismsŃand there's not much you can do about it. Appearing several months after exposure to the fungus, the infection causes a bad cough and shortness of breath, among other symptoms.