Hypergranulation or a granuloma can ocur during the proliferation phase of healing. During the proliferation phase, granulation tissue fills the wound and new capillaries form, giving the tissue its red color and granular texture. The wound begins to contract and the granulation tissue is soon covered with a layer of epithelial tissue (new skin cells). A granuloma is an excess of granular cell growth. A granuloma is a red or dark pink growth which forms a raw-looking layered bump that appears to erupt from the entrance(s).