We explored the degradation in electron beam pumped Zn1-xCdxSe/ZnSe laser structures by combining cathodoluminescence measurements in a scanning electron microscope with transmission electron microscopy. We found that degradation occurred via the formation of dark spot and dark line defects, and that it involved the formation of a characteristic type of defect, namely dislocation loops within the ZnCdSe quantum well, which grew to form a characteristic network as degradation progressed.