To be honest, I'm not sure what you have, or whether you have anything other than irritation changes, some if not all self-induced. Someone who writes, "Sometimes I would peel away the skin and blood would pour out," is someone who is (out of frustration or whatever other reason) traumatizing the skin in a way that will always lead to pigment changes (and more peeling?) Basically, unless you leave your skin entirely alone for 6 months, no treatment is going to help. That is what I suggest, whether or not you use Differin. By entirely alone I mean just that: no touching, no rubbing, no peeling whatsoever, period. After 6 months show whatever is left to a skin doctor.