There are new versions of Compound W with a different chemical composition, but the older standard versions are 17% Salicylic Acid which breaks down the keratin in surface layers of skin and generally triggers a body response to accelerate new skin growth from the inside. That's the method of driving the wart to the surface, pushed out with new skin from underneath. Normally, it should not go on healthy skin, but should do the same thing, killing the outer layers of skin and new layers should grow underneath. The white is dead skin. Not sure about dark red, which is normally blood from under the lower layers of skin.
Cells that make up your skin have a 14 to 21 day life. That is, your skin is all new every two the three weeks.
The Compound W is just making that go faster at a spot.
Most brain cells do not get replaced, but your body's cells are dying and replicating continuously.
If you are not happy with the Compound W actions, rinse it off with water. You can see a doctor if the wart still is there, or try one of the newer Compound W's that freeze it off.
Just like any bruise, your skin should heal itself.