Caperuza literally means "hood" or "cowl", but in this context, it's a direct reference to the famous fairy tale character Caperucita Roja, or Little Red Riding Hood.
In the song, the singer casts his lost love as Caperuza and himself as the predatory "lobo" (wolf) who is searching for her. This clever use of a well-known story adds a dark, dramatic layer to the song, painting a picture of a dangerous and compelling relationship.
This song tells a classic story of a messy, toxic breakup, but with a fairytale twist. The singer is looking for his ex, who has disappeared. He calls her mom, who tells him she's out with friends, trying to forget all his lies: "Saliste de fiesta para olvidarte de todas mis mentiras" (You went out to party to forget all my lies). He knows he messed up, but he also thinks she's gone too far, saying "Qué feo la cagaste, ma' / Tú no eres así" (You messed up so bad, ma' / You're not like this).
He frames the whole thing as a dark version of Little Red Riding Hood. He calls her "Caperuza" (Little Red Riding Hood) and himself the big bad wolf: "Soy tu lobo, animal" (I'm your wolf, animal). It's a game of cat and mouse, or wolf and rider. When her dad asks what he did to his daughter, the singer has a sharp reply ready, claiming she cheated on him first: "Supiera, viejón, que me hizo chivo su niña" (If only he knew, old man, that his little girl made me a goat [cheated on me]). The relationship is over, the flame is out, and he's left wondering where she is, assuming she's already with someone else.