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From ARRSEpedia

The 'Cap Combat', a DPM cap for wearing on exercise. A well ally item of 1970s head wear that was discontinued some time in the 80s. The perfect cap for cutting a dash across the Beacons, or that simple retro look on exercise. The wearer should ideally have appropriate '70s style pork chop sideburns for that extra 'special' effect.

So named because it made you look like a Japanese soldier.

See also: DILAC Hat.