put a magnet on it. legit stainless is not magnetic. also, it still needs grease for multiple reasons. i think what may have happened is your ball is stainless which is harder than steel and your trailer coupler is steel. the steel rubs off on the stainless and rusts on it.
if you take a piece of steel and make a bunch of scratches in anything, including stainless, you'll get rusty lines, this is why wire brushes are stainless (among other reasons).
there are different grades of stainless as well. 316 is pretty much stainless whereas 304 and lesser grades are stain resistant but will rust eventually.