  We present the X-ray properties of the 'Teacup AGN' (SDSS J1430+1339), a
$z=0.085$ type 2 quasar which is interacting dramatically with its host galaxy.
Spectral modelling of the central quasar reveals a powerful, highly obscured
AGN with a column density of $N_{\rm H}=(4.2$-$6.5)\times 10^{23}$ cm$^{-2}$
and an intrinsic luminosity of $L_{\rm 2\mbox{-}10\,keV}=(0.8$-$1.4)\times
10^{44}$ erg s$^{-1}$. The current high bolometric luminosity inferred ($L_{\rm
bol}\approx 10^{45}$-$10^{46}$ erg s$^{-1}$) has ramifications for previous
interpretations of the Teacup as a fading/dying quasar. High resolution Chandra
imaging data reveal a $\approx 10$ kpc loop of X-ray emission, co-spatial with
the 'eastern bubble' previously identified in luminous radio and ionised gas
(e.g., [OIII] line) emission. The X-ray emission from this structure is in good
agreement with a shocked thermal gas, with $T=(4$-$8)\times 10^{6}$ K, and
there is evidence for an additional hot component with $T\gtrsim 3\times
10^{7}$ K. Although the Teacup is a radiatively dominated AGN, the estimated
ratio between the bubble power and the X-ray luminosity is in remarkable
agreement with observations of ellipticals, groups, and clusters of galaxies
undergoing AGN feedback.
