Originally Posted by airsteve172

Whether to sand and/or fill it depends on how dry or hadened the paint is. If the paint is rubbery it won't sand very willingly and chances are that the edges of the paint will continue to peel.

It would certainly help to know what kind of paint it is, but I have an idea anyway.

With a very sharp blade, carefully trim away all peeled away paint. Take a fine point artist brush and fill in the peeled area with the yellow making sure that the paint being brushed is making complete contact with the surrounding paint edges. Let it dry thoroughly and wet sand over the affected area in the same fashion as done for the run to make it smooth again and follow up with a finish spray coat of paint to complete the job.

The reason for painting with a brush first is to seal the edges where the paint peeled so that the layer of paint will not continue to peel during sanding and the brushed paint also provides at least some amount of filling in the peeled area before sanding.

Brushing paint onto the bare spot may not be absolutely necessary before sanding, but it provides a little extra assurance that sanding will not cause further peeling.