Caperucita is the Spanish name for the classic fairy tale character, Little Red Riding Hood.
This word is fascinating because you'd never expect to find it in a romantic song about a breakup. Carin Leon uses it in a powerful metaphor, singing "La versión que tiene el lobo no es la de Caperucita" (The wolf's version of the story isn't Little Red Riding Hood's).
He's saying there are two sides to every story. He feels like he's been painted as the villain (the wolf), while his ex-partner has a completely different, perhaps more innocent-sounding, take on why they fell apart.
Carin Leon tells the story of a love affair that starts fast and burns out just as quickly. It begins with a look across a room, a joke, and then a flirty move under the table: "tu tacón tocó mi bota" (your heel touched my boot). He says falling for this person was "más sencillo que hacer la tabla del uno" (easier than the one times table), and by breakfast the next morning, he was already in love. It sounds like it was a secret or forbidden relationship, as he sings "Era prohibido, era imposible / Pero hicimos lo que se nos dio la gana" (It was forbidden, it was impossible / But we did whatever we wanted).
After hundreds of dates, the intense connection fades. "De tanto amarnos, nos volvimos dos extraños" (From loving each other so much, we became two strangers). Now, they have no idea what the other is doing. Looking back on the breakup, he uses a clever reference to a fairy tale, suggesting there are two sides to the story: "La versión que tiene el lobo no es la de Caperucita" (The wolf's version isn't Little Red Riding Hood's). The song ends with him wondering if, the next time they meet, they'll just repeat that first date all over again.