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.