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A nice sounding name for a not so nice problem. This is a turf disease caused by various fungi, especially Marasmius oreades. The name, Fairy Ring, comes from the growth of fungal fruiting bodies - i.e., toadstools - in a roughly circular pattern which can be several yards in diameter and can cause turf die off.
Sometimes they are caused by buried, decaying wood. Remove the toadstools and the buried wood to cure the problem. Spores are windborne.