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 $L_{rm 2mbox{-}10,keV}=(0.8$-$1.4)times 10^{44}$ 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 $Tgtrsim 3times 10^{7}$ 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.
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