Just a bit of total speculation (aka WAG) here. I've perused the sites, listened to the news reports and looked closely at many images.

I suspect it is a allergic reaction and subsequent gene mutation caused by some sort of external parasite or chemical. And that half of the sufferers have been diagnosed with Lyme disease makes me suspect its a new allergen carried by ticks, much as bubonic plague was carried by the fleas. The bubonic plague resulted in red spots turning black. That is why it was called the Black Death. If folks have pimples that ooze black, tarry substances, that seems to be somewhat similar response to an internal allergen

The fibers, seem to me, to be a genetic mutation of the hair follicle shaft mechanism in the skin cells of the epidermis. Hair is regulated by DNA. If the DNA is damaged in a certain area, those signals are no longer coherent. This is what causes cancer - incoherent DNA signal reproduction within the cell. The various colors would be determined by each cell's particular DNA damage. Hair loses its pigmentation when the cells that transmit data to the hair shaft follicle no longer carry certain protein combination formulas. Pink, red, blue and black strands could easily be formed by the manipulation of protein from the blood and, once set, each subsequent cell formed would carry the properties of the first. I didn't see any multi-hued strands here, such as pink and blue or red and black.

Here we are, apparently, seeing the mutation of DNA - which is also why the wounds do not heal properly or very slowly, as all the bodies immune and healing mechanisms are guided by these complex codes.

The signals are scrambled. If the allergen is carried in the blood, all the various organs are subjected to adverse reactions. Until one knows what the allergen mechanism is and how it is spread within the body, antibiotics and antiparasite medicines are just shots in the dark.

On the plus side, the body is a very intelligent structure and learns from its enemies. It eventually will create white blood cells with the necessary information to contain and, perhaps with chemical assistance in the form of proper medication, eliminate the allergen.

At the same time, one can't ignore that many of these folks may worsen or create new symptoms because of delusions, improper sanitary conditions or habits and various neurotic symptoms. The mind and mental stability of the individual plays a HUGE part in everyday health and the quick recovery from illness.

In a very unscientific culture folks are subject to fear all sorts of things. By calling it an "x-files illness" or some such thing just fosters fear and hysteria in the people who have symptoms.