This sounds most like a bacterial infection, starting as folliculitis then made worse by picking at it. The recurrence most likely just means you are a skin carrier of staph or strep bacteria, and perhaps that the original hair follicle is reinfected
However, your description of 'blisters' raises the possibility of localized herpes zoster (shingles) or an HSV infection. However, shingles is rarely recurrent, and rarely so localized to such a small patch. And although genital herpes can recur anywhere in the 'boxer shorts' distribution, an outbreak near the navel is highly atypical.
Bottom line: Recurrent folliculitis seems the best bet, but that's only a guess and other things are possible. See a health care provider if the problem persists or recurs again. But don't keep trying to find answers online. I can guarantee that nobody is going to be able to come up with a definitive answer.
Good luck-- HHH, MD
Thank you so much for the super quick advice. I appreciate it!