You can relax--Lotrisone does not cause damage to the scrotum, permanent or otherwise. The steroid component of Lotrisone is most likely what made the irritation of your scrotum get better (irritation is what I think you had, not yeast.) When inflammation goes down, so does the swelling. I think what you're seeing now is just what the skin looks like when it's healing. You can ignore the redness and sagginess. I suggest you just don't look for a month or so, if not longer.
I don't know what to make of the fluid coming out of your urethra, though, since that has nothing to do with your skin issue. You should ask your regular doctor about that.