Pilonidal disease is common in young overweight white males (late teens to early 20s) with a hirsute (hairy) body and working in sedentary professions. Hair is pushed into the tissues underneath the skin resulting in a reaction and cyst. It may also get infected.
You have mentioned that it bleeds and smells, indicating a probable infection. An examination by your doctor is needed to exclude other pathology causing a similar problem like an anal fistula. Discharging the disease requires drainage of pus and the wound requires frequent dressings until it heals. Complications like abscess formation may happen if neglected.
As this advice cannot be a substitute for a proper examination, I suggest that you consult your doctor for the opinion and management. Thank You.
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