Here's my headcanon for how inkling and octoling hair works; Basically, it has a similar texture to jello, except a lot more stiff so it can hold together while remaining flexible and jiggly. It also has SOME nerves in it, but only enough that an inkling would feel when something touches the hair, so if you punched it it wouldn't really hurt since it's not like an arm or something. This would also explain why they're able to cut it since they pretty much can't feel pain in it