Hispidin-3-hydroxylase; part of the gene cluster that mediates the fungal bioluminescence cycle (PubMed:30478037, PubMed:26094784). Hydroxylates hispidin in order to produce the fungal luciferin 3-hydroxyhispidin (PubMed:30478037, PubMed:26094784). The fungal bioluminescence cycle begins with the hispidin synthetase that catalyzes the formation of hispidin which is further hydroxylated by the hispidin-3-hydroxylase, yielding the fungal luciferin 3-hydroxyhispidin. The luciferase then produces an endoperoxide as a high-energy intermediate with decomposition that yields oxyluciferin (also known as caffeoylpyruvate) and light emission. Oxyluciferin can be recycled to caffeic acid by caffeoylpyruvate hydrolase (PubMed:30478037) (Probable). H(+) + hispidin + NADH + O2 = 3-hydroxyhispidin + H2O + NAD(+) H(+) + hispidin + NADPH + O2 = 3-hydroxyhispidin + H2O + NADP(+) Secondary metabolite biosynthesis. Monomer. The availability of a complete eukaryotic luciferin biosynthesis pathway provides several applications in biomedicine and bioengineering. Belongs to the paxM FAD-dependent monooxygenase family.