Diagnosis
The 24k gold-plated barrel is degrading from heat stress and mechanical wear at the high-friction clamp contact point. This is a common cosmetic issue.
How to Fix It
Stop using it immediately if the underlying ceramic is exposed and cracked. If it's just surface flaking on intact ceramic, you can continue use but the performance and non-stick quality will diminish. There is no user-repair for the plating.
If That Didn't Work
If the flaking is severe and you're within warranty, contact Hot Tools customer service with photos—they sometimes offer replacements for premature barrel degradation.
Heads Up
Never use abrasive pads or metal tools to clean the barrel, as they will accelerate this flaking. Use only a soft cloth while the iron is cool.