We present and analyse an extensive dataset of the superluminous supernova (SLSN) LSQ14mo (z = 0.256), consisting of a multi-colour light curve from -30 d to +70 d in the rest-frame (relative to maximum light) and a series of six spectra from PESSTO covering -7 d to +50 d. This is among the densest spectroscopic coverage, and best-constrained rising light curve, for a fast-declining hydrogen-poor SLSN. The bolometric light curve can be reproduced with a millisecond magnetar model with similar to 4 M-circle dot ejecta mass, and the temperature and velocity evolution is also suggestive of a magnetar as the power source. Spectral modelling indicates that the SN ejected similar to 6 M-circle dot of CO-rich material with a kinetic energy of similar to 7 x 10(51) erg, and suggests a partially thermalised additional source of luminosity between -2 d and +22 d. This may be due to interaction with a shell of material originating from pre-explosion mass loss. We further present a detailed analysis of the host galaxy system of LSQ14mo. PESSTO and GROND imaging show three spatially resolved bright regions, and we used the VLT and FORS2 to obtain a deep (five-hour exposure) spectra of the SN position and the three star-forming regions, which are at a similar redshift. The FORS2 spectrum at + 300 days shows no trace of SN emission lines and we place limits on the strength of [ O i] from comparisons with other Ic supernovae. The deep spectra provides a unique chance to investigate spatial variations in the host star-formation activity and metallicity. The specific star-formation rate is similar in all three components, as is the presence of a young stellar population. However, the position of LSQ14mo exhibits a lower metallicity, with 12 + log(O/H) = 8.2 in both the R-23 and N2 scales (corresponding to similar to 0.3 Z(circle dot)). We propose that the three bright regions in the host system are interacting, which could induce gas flows triggering star formation in low-metallicity regions
