Could she be scratching?…I have one that when she scratches her neck, even a little, she gets a reaction like you are explaining. It is a bad flea year here for us...so she also is super reactive if she gets a flea bite, then she will start scratching, and get a hot spot, like immediately...
Hair loss
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The first summer with my female I used one of those squirt-on-the-shoulder fleas/tick medications. A day later all her hair was gone in that same spot - the Rx burned it off and it never really grew back completely. Since then I've only used herbal sprays (like citronella) and have had no problems. Until this weekend - the "burn spot" is once again looking like it's balding. Could she be developing a resistence to the citronella?
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Was the original medication herbal too? I'd try a garlic spray rather than citronella which I would think might be a bit too fierce.
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Some dogs do react to the meds that apply to the skin. Perhaps her response to it just indicates very sensitive skin and she is getting a reaction to the other stuff. If so, she might react to almost anything. I would consider going with the pill flea meds for a dog like that. I don't say that lightly– I really do not like giving my dogs internal meds to stop external issues-- but then mine have never had any issue with frontline spray.
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I found a new brand made locally with rosemary and garlic and something else (and no the original flea medicine was not herbal0. I'll let you all know if that helps.
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Yes, please do let us know. Personally I never have to deal with fleas but use a product called 'Billy No Mates' which is a herbal mix obtainable from www.csjk9.com I'm not sure whether they ship abroad but do have a look at the details on their site.