The tefach I learned was cumulative. The entire volume of hair showing would be a tefach or less. So with a tichel, a little of the side “payos” could show, as well as a tiny amount at the top, and still be tzniusdig. To answer Aries, that also would allow for a small amount of hair to go over the top of a shaitel, to make it look more like the shaitel is natural hair. I never did this myself, but know people who do.
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