Liverpool wanted the 20-year-old to return a few weeks early from his spell on the east coast so that he could recover from a hamstring injury and then provide cover at centre-back in the absence of Jamie Carragher.
The Championship side refused - only for the player's injury to get worse.
Hodgson told Liverpoolfc.tv: "We're very disappointed in Hull City. I was disappointed to read that he's returned to his parent club through injury, when in fact he has returned because we're not prepared to loan him out to Hull anymore.
"We wanted to bring him back for the last three weeks of 2010 to get him fit, because he wasn't fit there, and to cover Jamie Carragher. Hull totally refused and said, 'No, under the loan agreement he's here until January 1 and we're not prepared to allow him to go back.'
"We then said, 'In that case you can forget about loaning him in January.' We'd done them a great favour loaning him to them for so long and we couldn't believe that when we were in need of him, they said 'No'.
"Then (after Hull said 'No') we wanted him here at least until such time that he got fit from his hamstring injury, which we thought would be the middle of December, but they refused that as well and insisted he went back there. And then with the treatment he has been given there his injury has now been aggravated.
"Our fitness people were under the impression when he was here that they'd have him fit for about the 15th or 16th of December - now he won't be fit until the end of January because his injury has been exacerbated by going back to Hull City."