By the red "fading into the adjoining squares", do you mean that the red dye is bleeding into the other fabrics? Also, is this a finished quilt -- meaning it has been quilted? How much repair do you need to do?
If the quilt is finished -- meaning quilted and bound, then it is safe to wash it before handling. However, you need to wash it in a certain way. I can explain how I would do it, but I want to be sure that what I am understanding so far is correct.