Melody, you or Alan should ask the doctor what happened.
Lots of things could have happened from what you've written.
Sometimes the inflated balloon on the end of the cath can get stuck in the urethra rather than in the bladder too and that would be very painful.
There are a number of different methods for deflating the balloon. It's likely it was a needle rather than a blade. Usually that would be done with help of ultrasound though. Main problem would be that a piece of the deflated balloon could break away and need to be removed.

Thinking of you both. Wow, what a time it's been for Alan.