It just looks like a really, really bad wig though.

I've noticed that as well on a character that had the Cyrod Gentry's Town costume on, it was dyed blue and gold, and there was a small gold mark on the hair in the front, as if the character was wearing a partially hidden tiara (I didn't have any accessories on them). I'm a bit disappointed with this style; I've been asking for curly hairstyles for years, and I know others in the forums have as well, but this style falls short on so many counts:

The hairline and scalp look odd because of the raised volume in the roots, the texture looks as if it's straight hair that's been curled, rather than naturally curly hair, and even then it's not very well done, because at some parts it looks like straw or like paper streamers--some of the curls even look angled, like a fold in a paper. I'm glad we finally got a non-straight hair style, but I wish it was more like the hair seen on a character in one of the Murkmire wallpapers, that would have been a great style to have instead.