Could maybe have been from the last time you shaved, and might have cut yourself slightly and even noticed it. (I've done this before and that's all the lump was with me...under the skin and not sore or anything) I don't think it could be infection either...because you would have more than one, and since your pap came back clear that's unlikely too. I would keep on eye on it and if it doesn't go away within a few days maybe get a doctor to look at it.
It could be a small benign cyst, or an ingrown hair. If it starts to worry you or get bigger go to your doctor and have him take a look at it, he might do a biopsy. But your saying its squishy which means it might be puss filled. So it could be a pimple even. But if it becomes hard that would be the time to go to the doctor.
no its not always cancer...it must be a swollen lymph node...check with your doctors..
Thanks for the comments ! I will call my doc Monday