I have created an piece of work from a photo I vectorised in Illustrator and brought into Photoshop, It is on a transparent background and the paint bucket, for example seems to work as normal. However, when I try to resize the image using free transform, no handles appear and I cannot resize but if I drag on part of the illustration the whole layer seems to move and the (one) colour I used in my illustartion seems to be a background colour underneath the transparent layer containing my picture. Hope this makes sense as I am a bit of a beginner. Thank you for any advice on how I can free transform my image.
Sorry if I haven't explained it well, as I said I am a beginner. Yes I placed the image as a smart object from AI initially, using copy and paste. I've enclosed a screenshot of what I tried to describe.