Have seen this happen, not too unusual, more often with 'wet' chicks...which can be due to not enough moisture evaporating egg during incubation.we had a couple others where a bit of the "jelly" was dragging but none so bad as that one, and those came alright after a bit.
Have seen this too, definitely can make it worse, why the cup to keep them from cavorting. They move around a lot, spastically, after hatching, why ya gotta watch for connected umbilicus gunk that can get hung up. Dragging shells need attention and removal.I am thinking that. that chick might have stepped on his "jelly" and made it worse. I saw him trying to drag the egg shell around, so he was in a hurry to go somewhere..