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Years ago, I was thinking about getting the leather on my car seats repaired, and I emailed Kevin some photos of the damage, and he was able to explain the various options- his email is on this page - Contact Information - Advanced Leather Solutions
The best thing you can do is just what you were doing, and don't use the seats much. Water isn't really that hard on leather as long as it's allowed to dry thoroughly. It should eventually dry to the same shape it was before... UNLESS you stretch it while it's still wet.
I'm wondering if that small area hasn't dried as much as the rest of the seat. Before you do anything else, I suggest that you get a hair drier in there and hit that spot good. My guess is that it'll shrink back to normalcy. If not, and you're convinced that it's completely dry, perhaps you can spray some alcohol on it and hit it again with the hair drier. Alcohol dries much faster than water, and with a hair drier it'll dry pretty quickly.
I throw my leather tennis shoes in the washer now and then and let them dry slowly by normal evaporation at room temperature. If you try to dry them rapidly they'll shrink. Same goes for all (real) leather. I learned a little about leather stretching and shrinking when I owned a shoe store for a few years.