Tinea Capitis - The Fungal Infection That Can Cause Permanent Hair Loss. . . . Tinea capitis, commonly known as scalp ringworm, is a fungal infection of the scalp. It appears as scaly, circular bald spots on the scalp, sometimes with broken hairs that look like black dots. These patches can be itchy and inflamed, leading to redness and swelling in the affected areas. In severe cases, it can cause a kerion, a painful, purulent-filled swelling that can lead to permanent hair loss and scarring. . .