I agree with all the others that it's the batting shrinkage that is causing your 'bunching' in the dryer. Either pre-wash it as well or switch to a poly batt. And I've had the same issue with having a pre-washed fabric continue to bleed. Mine was a green fabric and was equally disasterous. Went through the same process you did. I don't normally use color catchers or any other products (except normal laundry detergent) when I pre-wash. If I find something that bleeds, then I'll do another wash with the color catchers until it stops but generally don't have the issue. Red is a notorious bleeder, though.