What is going wrong?
I guess too much/ not enough water?
Light burn? Is about 12,000 lux.
The soil under that shitty top layer is a bit rich with compost, fert, etc. Maybe the new roots are getting burnt as they grow?
Try goin easy on the watering, those leaves wrinkling and twisting might be a sign of water damage in seedlings!
Seedling may also start their growth a little distorted and with irregular growth that eventually corrects itself (due to genetic instability)
Other than that just use unfertilized tap water to irrigate until 2nd-3rd sets of leaves begin to grow, that's when you want to start fertilizing with about 1/4-1/5 of the recommended dosage (if using liquid fertilizer), if the tip and margin chlorosis (burn) persist then flush the medium with tap water!
Hope this helps! Good luck and happy growing :)