How can some children be malnourished if they have bulging, round bellies?

Protein malnutrition: The protein in our diet is converted to usable aminoacids and plasma proteins that keep fluid inside blood vessels during the bloods transit throughout the body. Malnourished kids leak enema fluid (water) into the organs & tissues because there is not enough protein in the blood to keep it from happening. The kids may look fat, but rather than fat this is water in organs & tissues.