It definitely has the pinched stem, You could try lifting it in low light wash plant stem and root in a peroxide solution (pipette), then re-pot almost up to the cots in fresh peroxide soaked coco. If you do this you must be like a surgeon handling the seedling and back filling with medium. You are gambling here hoping the seedling has time to root out above the pinch. If it survives there is always a danger the infection has become systemic, you may not see it again until the plant hits senescence and weakens, when it will appear in your plant as a bud/stem rot. As I say it's a gamble. No matter what, you know there is an infection of some sort, Bacteria/Fungal in that pot Peroxide flush the pot at least to stop it spreading it only takes one gnat to infect every pot in a domino effect.