those crushed insects said to have colored lipstick were most likely cochineal, which are a form of "scale" . Cochineal is ofen used in dyeing wool and other fibers. http://www.botgard.ucla.edu/html/botanytextbooks/economicbotany/Cochineal/
http://www.allfiberarts.com/library/howto/ht00/how_dye_cochineal.htm
http://www.bell.lib.umn.edu/Products/cochinea.html
oh by the way, " natural dye obtained from an extract of the bodies of the females of the cochineal bug (Dactylopius confusus)"