How I have put this all together in my mind, simplified (I am going to go ahead and anthropomorphize the brain for ease of explaining):
You have two basic neurotransmitters at play here (others are involved but these are the main ones): GABA and Glutamate.
Glutamate is your main excitatory neurotransmitter for nerve signals and GABA is your inhibitory one.
You need both in balance and both are present throughout your body (everything from your muscles to your pancreas).
In the hearing pathways, you have these receptors in both your cochlea and in the higher auditory processing centers centrally.
Acutely after injury (e.g., noise, toxin, etc), your IHCs dump too much Glutamate at once and your NMDA receptors are overstimulated and oversensitized. There is other damage too directly to structures but keeping it simple...
This excess neuroexcitability from this excess Glutamate gets propagated up the auditory pathway. For some people, when this normalizes, they get improvements.
There are mechanisms to propagate this overexcitability past the acute phase, though. Chronic inflammation will do this (normally inflammation is self limiting unless you have a continued stimulus, e.g., autoimmunity, allergy, or viral etc etc). Severe, uncoping stress will also change your immune profile to favor Glutamate over GABA. In addition, stress causes the release of dynorphins into the cochlea (from axons traveling from the brain) and these can sensitized the NMDA receptors further (I suspect that's why people who have tinnitus and are severely stressed are more prone to noise injury from quieter noises than previously).
Anyway, in addition, if you have a predictive brain there is a greater mismatch between what the brain "expects" and the sound it hears (a popular example of how the brain can change perception in the visual system is the color changing dress).
When the predictive brain gets a mismatch, it doesn't like it and tries to reconcile this by "pushing" the system for more input with more Glutamate to increase the signal. This obviously doesn't work with hearing damage (or hearing interference) because the signal is broken but the brain keeps trying.
That's my take anyway. Thoughts?