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Fungal Acne : Symptoms, Causes and Treatment Clusters of small, itchy bumps can look like ordinary acne. However, they may indicate Malassezia folliculitis, a condition commonly called “fungal acne.” Despite its popular name, fungal acne is not true acne. Instead, Malassezia yeast grows within hair follicles and causes inflammation. Malassezia normally lives on healthy skin.