Rolia's translation is closer.
She's telling him to cut it because she ate a few strands while sleeping beside him. He questions why that should matter unless if she plans to sleep beside him again.
Either way, I'm still with Shaorin on this, even with that mistranslation.
The Korean word used is dokkaebi, which is different from the western goblin. Dokkaebi is one of the most popular creatures originating from Korea.
You can think of it like how oni is sometimes translated to ogre.