The document discusses how sound waves cause shearing between the basilar membrane and tectorial membrane in the cochlea. This shearing movement bends the stereocilia on top of hair cells, generating receptor currents. The currents create four types of electrical potentials: resting DC potential; alternating CM potentials from acoustic stimulation; direct SP currents also from sound; and action potentials in the VIII nerve. The movement of hair cells and different electrical potentials in the fluids of the cochlea stimulate the VIII nerve to transmit afferent signals about sound to the brain. Damage to hair cells or their blood supply can cause hearing loss by modifying the electrical currents.