Yes that car is upside down, and yes it's taking part in a race. The race is a tongue-in-cheek event called the 24 Hours of LeMONS, an endurance race for $500 cars. The car in question can at once be described as a Chevy and a Ford, a Camaro and a Festiva, right side up and upside down.
The man behind this Frankenstein's monster of a vehicle is himself quite the character. Going by the moniker Speedycop, the car's creator has transplanted the body of the Camaro (upside down) onto the guts of the Festiva — meaning that, yes, this Camaro has a four cylinder, 1.3 liter engine.
Needless to say, the upside down car didn't exactly cross the finish line first. Nonetheless, as a street car, this sucker is sure to garner a well deserved stare or two. Check out the video below to see it in all it's racing glory.