Seedling fungus or mold?

She ain't going to make it and there is nothing you can do to save this one.. Not all seeds are meant to be and this is one of them..........unfortunately, not all seeds are perfect. Try and keep seedlings dry and never spritz them with water (if you have been doing so), it is unnecessary and just encourages fungus.

The seedling has been completely enveloped by fungus - pitch it and pop another seed... but use a new pot and new soil. Fungus grows in very moist conditions so you've watered this little baby far too much. Soil needs to be moistened AROUND the seedling and then let dry completely before watering again. If it's any consolation, this is the top, most frequent cause of a seedling or plant dying off... overwatering. Overwatering is NOT how much water you give a plant but rather the state of being constantly wet... So it's possible (and frequently done) to kill a plant that is well-established. If you don't let them dry out, you will kill them. For one that size, 1/4 cup of water AROUND the plant once a day would be sufficient... keep the humidity up high (70-80's) and you'll be good. Good luck!