A Red Squad series would be doomed from the start. Red Squad, by definition, was a corrupt organization, playing at the egos of its members - when you believe you are the best, then by definition you think you are better than everyone else, and this leads to all sorts of problems. Not the least of which was Red Squad being used as a tool by Admiral Leyton in his attempted takeover of the government. An organization like that could not help but do something like that - hell, if Leyton hadn't come along, they might have tried it on their own.
I would not be at all surprised if Red Squad had ties to Section 31 in some manner. Red Squad had no more of a 'right' to exist than Section 31 did, and I view both organizations as similarly corrupt.