It looks better because the tissue was allowed to expand again.
However, the damage was done, as evident by the bleeding under the skin. Just watch it to make sure it won't swell up now.
Keep the handling to absolute minimum for now. Only for maintenance of the enclosure and to have a quick check while the snake is in the tank. You don't want him to slither and bend around your fingers, as that makes him contract the muscles to stretch and move.
It needs to heal..
I would still take a good long feeding break, at least 2 to 3 weeks. And then feed rodents that are only about as big around as he is in the damaged area. If nothing else, this is probably quite painful, as crushing injuries tend to be.
They are tough, they often heal up just fine, but I wouldn't want to rush anything. They can go that long without eating without a problem.