After the eardrum and small bones in your ear vibrate, the vibrations are transmitted to the cochlea, a spiral-shaped organ in the inner ear filled with fluid and hair cells. These hair cells convert the vibrations into electrical signals that are sent to the brain via the auditory nerve, where they are interpreted as sound.
It pretty much makes you deaf. I wont get complicated, but pretty much, there are cells with hairs sticking out of them in an organ within your inner ear. When loud music plays, vibrations are sent from your ear drum, amplified through the malleus, incus and stapes and are passed onto the oval window. These vibrations are sent through a thick fluid called the endolymph and this moves those hair cells. The hairs (stereocillia) pick up vibrations depending on their length. If there is too much energy in the vibrations, the cells become useless and you lose hearing in that particular frequency... forever!