I too think it was a body shot and a short followup punch that put Cotto into retreat. When Shane was a lightweight, he had a devastating body attack. Sometimes when the "body puncher" (i.e Cotto) gets body punched for the first time in his career, he finds out he doesn't like it either. It took 2 more rounds for Cotto to begin making any effort to come forward. Shane just couldn't get another series of punches in like that for the rest of the fight.
Yes, he most certainly was. Mosley was landing truly heinous body punches. Anyone would have been hurt.