Hi Eric,
What is described/pictured appears to be a reaction to envenomation by a cnidarian of some type, most probably a hydrozoan. If a milleporinan such as fire coral was observed on the area that was touched it is a likely candidate, although that level of specificity is academic for the purposes of this discussion.
When such an organism is scraped against, a burning/stinging sensation and skin rash typically appear soon after contact, say within 5-30 minutes. The rash usually will be red in color with numerous small blisters and/or hive-like areas, and will itch, sometimes intensely.
The skin lesions often clear within a couple of weeks, although rashes lasting many months occasionally are seen. The fact that bumps also develop nearby the point of maximum contact is not unusual. Once released, the as yet unfired stinging organs of hydrozoans can be moved about by water, rubbing of the area and similar mechanical actions.
In certain hypersensitive individuals, a delayed recurrent allergic reaction may occur 1-2 months, or even longer, after initial clearing. And, rarely, this cycle may repeat itself.
In terms of treatment, OTC oral and topical antihistamines, such as those marketed as Benadryl, may provide some relief. In the case of severe delayed recurrent reactions, topical corticosteroids may be the treatment of choice.
A dermatologist would be in the best position to evaluate and treat such a condition.
This is educational only and does not constitute or imply a doctor-patient relationship. It is not medical advice to you or any other individual and should not be construed as such.
Regards,
DocVikingo