Technically this is an exploitation movie, although the content is pretty mild compared to most other exploitation movies of the time. This is more of an old-style exploitation movie, one that deals with the overblown dangers of drugs.

Basically, ten years ago a bunch of people living in an urban community took some LSD called Blue Sunshine, but it was a bad batch. Now, they're having symptoms, starting with hair loss, loss of self-control, and sudden extreme violence. Eventually the person will snap, their entire head of hair will come off like a wig, and they'll start murdering and doing horrible things.

In the middle of all of this is Jerry Zipkin (Zalman King), who ends up getting inadvertently framed for murder and has to spend the movie trying to figure out what is going on with the people in his circle freaking out and going on kill-crazy rampages.

Also, there's a song by The Meteors inspired by this movie: https://www.youtube.com/watch?v=8NWPdJ6dPAY