FLIP: Put this card face-up in your opponent's Deck and shuffle it. When your opponent draws this card, it is Special Summoned to their side of the field in face-up Defense Position, and inflicts 1000 damage to them. Then, while this card is face-up on the field, all monsters your opponent controls become Insect-Type monsters.
No, if a card is destroyed by battle, it can't go anywhere else but to the graveyard, unless it's effect explicitly says so. Plus, flip effects that cannot have all of their listed effects accomplished, won't activate at all, as you might have already noticed with Dark Cat with White Tail being flipped alone by an attacker in the player's field. If he'd survive, he could be a target.
Well that is simply false. As I said in replies above, the official Konami ruling for this card is that flip from combat activates the effect and it goes to the opponent's deck even if it would have otherwise gone to the graveyard.
Card effects only work with the mechanics of the actual yugioh card game. Since skills were never a part of the actual yugioh card game, card effects would never work with skills to begin with.
its weird since hane hane activates if flipped even if it is destroyed but even the anime shows in duel monsters when joey fought against mako tsunami and left parasite paracide in his deck he was confused why the effect didnt activate and mako tsunami explained it only activates if it survives.
Lemme explain something
Hane Hanes effect dont give a fck about it being destroyed while Parasite do so.
You cant put a destroyed monster into your opp's deck
I agree that the card is bugged. As someone said, other flip cards, like Hane-Hane, always have their effect applied before been destroyed. The order is always this: attack, flip, effect activation, destruction. This order is applied to all the other flip effect monsters, except for Parasite Paracide. For me, the description make it clear that, if the card is flipped, it is sent to the oponent's hand. The destruction should resolve after the effect activation, exactly like other cards. In older Yugioh games, the effect of this card always applied even if the card should be destroyed.
Here is something worth mentioning: if your opponents side of the field is full and he/she/apache helicopter draws the card, its effect does not trigger! So the cards effect only triggers whenever there is a free monster spot on their side of the field.