Its them silly cups mate
She's struggling breathing
As subs dry or simple holes at the bottom of pot. Air moves thru the substrate and helps the plants roots breath.
You need to uppot to a new pot. New soil, not wet. Dry soil..
Cut the bottom of cup with blade.
Then place your cup in back fill it just leaving enough space so you can run a blade up the side and simply pull the cup up. As she's very young, and so small. The substrate will fall apart as I dount there's much roots.
O2 is much more important to young seedlings.