how old is your baby? it is natural for all of baby's hair to fall out and the new ones will grow back. my baby also had bad cradle cap and i also use dentinox cradle cap shampoo. his hair started falling at beginning of 3 months. it only started to grow again when he was 6 months. this process is called in chinese "tuo tai mao" (dropping infant hair) that's why some people shave off all the hair instead of waiting for it to fall off.