Hi Pinkdervish, I always get reactive bumps under my skin after I have derma rolled my neck area, and there's heaps of them every where that I have rolled. I know its an immune reaction to the injuring from the roller; which is a normal body function, they will last about 2 days and nearly all gone by the 3rd day. They have never turned into cysts that remain so I cant advise there, however I did have a cyst once that reacted similar to yours with continue peeling and then eventually went away. After injuring the skin I only use the copper peptides without the salicylic acid in; to help with the wound healing and never any form of chemical exfoliant for at least a week; to me, its too much irritation and stress for the skin, that has already been injured from the rolling. After injury I feel you just need to let your skin deal with the inflammation and heal, less is more. I don't know if this helps, just my natural inclinations in regards to your issue.