Novel phenomena in magnetically-intercalated graphite has been a subject of much research, pioneered and promoted by M.~S. and G.~Dresselhaus and many others in the 1980s. Among the most enigmatic findings of that era was a dramatic, roller-coaster-like behavior of the magnetoresistivity in EuC$_6$ compound, in which magnetic Eu$^{2+}$ ions form a triangular lattice that is commensurate to graphite honeycomb planes. In this study, we provide a long-awaited {\it microscopic} explanation of this behavior, demonstrating that the resistivity of EuC$_6$ is dominated by spin excitations in Eu-planes and their highly nontrivial evolution with the magnetic field. Together with our theoretical analysis, the present study showcases the power of the synthetic 2D materials as a source of potentially significant insights into the nature of exotic spin excitations.