Looks like a mutant.

The only thing I can think of that would do this type of damage to a plant would be broad mites. Though I am not sure, any other plants exhibiting any issues like this? Also could you get a clearer pic of one of the clusters.

Mark

They look like some sort of rosette gall, which are often formed by insects. But I have never heard of them on peppers, and genetics are anothe possible cause. Not really sure.

Just thinking aloud but I know tomatoes can produce super blooms, which are a bunch of flowers fused together, sometimes they go to fruit and become oversized. Happens more during unusual climate years, this year included. I've never noticed peppers doing the same, but who knows.

Or as mentioned prior, maybe it's a genetic mutant.

I'd take a bunch more pics just to make sure you get some clear ones, because you do have something rare and unusual going on.

Here is another pic. Sorry if it isnt much better, I dont have a very good camera. The hand in the bottom of the picture is mine not the plants:) Who knows it could have its own soon.

Here is another.

I bet the NM Chili pepper institute would like some pics and maybe even a sample or seeds.

Check out this article

Here is a link that might be useful: inflorescence mutations

Thanks everyone for your responses. The last thing I was expecting to read was that its a genetic mutation or anything of that nature. I will contact the institute and will be glad to send them some samples. Cant send seeds because it wont flower. Thanks again

Mine kinda looked like that and now they look like this - I looked at numerous galleries til my eyeballs starting drying out and couldn't find what it is. A friend gave me a pod last year and he didn't know what it was either - just said "something hot"!