When Hoss is applying the animal liniment to Joe it starts off book then starts getting warmer and hotter until it starts to hurt so much that Joe jumps up and jumps in the water trough to cool it down. Hoss even mentioned that Joe's back started to look red; however, Hoss was applying this liniment with his bare hand and his skin wasn't affected by the liniment at all.
Most animals, including cattle, can't see red so it didn't matter that the handkerchiefs being waved were that colour. All that did matter was the waving motion.
When Joe is shooting bottles, he replaces one then turns to greet Hoss, then turns back. The first bottle is somehow gone and he puts another bottle on the fence.