The character is a female http://tesnexus.com/downloads/file.php?id=16120 (with http://tesnexus.com/downloads/file.php?id=32685). In character creation, you can see which hairs will be affected by the "instant toupee" effect (as I have dubbed it) since the character will appear bald when selecting the hair. Corean hair 06 was the specific hair I chose, though it happens with many of the other hairs as well.
Everything looks ok in tes4edit. Meshes and textures appear to be in the correct locations, and are provided by the CuteElf package itself.
Does anyone know why this happens?