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Other common things that can cause toenail fungus include: 1  Improper footwear, especially tight-fitting shoes. 2  Medical conditions such as diabetes and other circulatory conditions. 3  Toenail polish that is applied in layers.  Hosiery, socks, and shoes that do not allow the feet to breathe.
The infection is generally located underneath the nail. A toenail fungus infection can cause foul smells and discoloration. The fungus that grows under the nail eats keratin, the protein that makes our nails strong and hard.