My daughter got cut by a fish hook...info below:

It sliced her leg skin, not deep, like a fine line. First night I flushed it out while scrubbing it with bar soap, flushed it more, then put iodine type solution, then neosporin. First day after it looked good, just a scabbed fine line, had a larger bandage from first aid kit on it. There was no redness next day after the cut.  3rd day: Then I changed bandage to a waterproof type, (put liquid bandage on cut, then the bandage). I just took bandage off and the cut is red ALL around it and the skin is hard to the touch and the scab came off with the bandage and the scab no longer looked like a scab but the thin line of pus or, was it the 'liquid bandage' sticking to the bandage gauze? The bandage was almost stuck to her skin.(she went to swim camp today)  I'm worried now. Is the hardness around the area a sign of infection and what could result from it?  I flushed her cut again which itself looks like it's healing, cleaned it then put Neosporin on the cut itself and Hydrocortisone on the red (thinking it was an irritation from the bandage)...what is going on with this cut?