I don't know whether the wraparound scheme came as a result of Red Flag, or simply because other camouflaged aircraft were being similarly painted.
I once saw a single seat Hunter which had been allocated to a Bucc squadron (I think it was 12 Sqn) following the Red Flag accident. It had just been major'd and repainted in a similar scheme - and was flown without tanks or pylons. It looked great and flew even better - as it was a GT6, it didn't have guns, sabrinas or a gunsight either!