Not really an idea, Jali'. Here is something I got from one of the extension service websites. It may not be clear enough to be of any help, anyway:

I had some problems in a few of my starts. A panic response nearly set in. It was in a few things but mostly the tomatoes. I don't think it was fusarium and I have had unfortunate experiences with that on several occasions. No stem seemed to be involved and it was mostly on seed leaves.

It seemed to me to be a fungus and where it was on the true leaves, they were crinkled. I could not find an aphid. It ended up with me not losing any plant.

Since it was so very early and didn't seem to be fusarium or aphids, I was left wondering if it could be botrytis. My experience with that goes waaay back to the rose greenhouse and once in awhile in the dead of winter. Anyway, the plants seemed to come out of it. One darn thing after another . . . Here is Wishing You the Best of Luck.

Steve

I have had plants do that, although they also show deformities in the cot's too. The ones on the plant look pretty normal. In my experience, they usually grow out of it, though, they are usually stunted for quite a while.

Thanks Steve and Zach. I'll just baby this one and see if it comes around. Terry of Secret Seed Cartel said some of her paprika were doing the same thing. I've never had it happen before on this variety or any other pepper. If it was perfect from year to year, we would get bored, wouldn't we? :)

Glad you didn't lose any seedlings to whatever visited, Steve.