The most common and most likely answer to this crossword clue is the 5 letter word FUZZY
F
U
Z
Z
Y
Buddy explains!

The straight part
We know that "hairy" is the straight/definition part of the clue. The straight part is often a synonym or definition, in this case hairy = fuzzy.The cryptic/wordplay part
In cryptic crossword there's often an wordplay/cryptic part as well.This part involves a more complex hint, such as an anagram, homophone, hidden word, etc.
Sadly, We don't have an explanation for this specific crossword clue yet.
What does FUZZY mean?
FUZZY noun- (often in the plural) A very small piece of plush material.
- Something covered with fuzz or hair, as an animal or plush toy.
- A person, especially a college student, interested in humanities or social sciences, as opposed to one interested in mathematics, science, or engineering.
- A soldier with the rank of private.
- Covered with fuzz or a large number of tiny loose fibres like a carpet or many stuffed animals
- Vague or imprecise.
- Not clear; unfocused.