I do believe the watering technique is not good for your seedling.
It should remain a bit moist, and never too wet. Also watering from the corners are the best options, to induce the roots to seek water.
Also you could do only 1 watering to moist all the soil a bit, and so on you only spray water over the plant.
Seedling shouldn't lose water by dry air, so a plastic cup with many holes could be good to keep moisture over the Cotyledon and new leaves formation.
Water now is the key to the development.