Hm, it's possible the diode was damaged with the increased current. Another thing is the batteries you were using, were they CR123 primary cells or RCR123's? RCR123's wil kill the didoes in these lasers due to the initial voltage of nearly 4V.
If the diode is damaged, it can still be showing up with proper current draw..however most of that energy is probably being wasted as heat. As for why you are seeing red, a damaged diode would explain this, it takes a certain amount of pump energy to meet lasing threshold in the ND:YVO4 crystal. If that requirement is not met, you will not have any green output, only the dull red near-IR.
