I immediately separated them I thought mama was going to kill them when I saw the blood. I tried setting each one in its own little cup but they are really wiggly and ending up in a balled up mess in the bottom and when they tucker out from all that wiggling they get floppy and end up slouching in the bottom? Do they have to be upright in a cup or could I use a shallow bowl?
The cup is to keep them from rupturing the egg sack before it absorbs. Sometimes if there are a lot of hatch lings, they will also peck at the blood.
They are in a brooder?
Keep doing what you are doing and they will be much better tomorrow. Make sure they are eating and drinking too.