Iodine painting ruined skin?

I read about how great Iodine is for removing scars, and read many posts about using Iodine to paint over scars and letting it peel off to reveal fresh new skin.

I should have had more caution, because I think I may have made a couple of my scars so much worse. I have flat, white scars, about 5 years old. They make me self-conscious and I'm always worried that someone will ask me about them. So Iodine seemed like it would save me from this, but nope. I applied it to two of these scars and applied usually 2-3 times a day. It would sometimes burn when I applied, but I read that was normal. The iodine eventually made a scab and peeled, but did nothing for the scar. It was still there. So I left it alone to let it heal and now there is a red stain where the iodine was. This is absolutely horrible because now the scar is even more noticeable; it's so much worse than before. The scar itself looks the same, but now with a red aura around it. I'm so self conscious about it and am dreading the summer even more than last year.

Is there anything I can do?? I used 5% lugol's. I have a massage scheduled and I'm terrified what they are going to think or ask when they see my scars...please tell me there is something I can do. It's been about a month since the painting and it's still red.