That can be done, peat is highly acidic and water retaining., If you placed the jiffy plug back into a "soiless mix" which, then again is consistant of peat that may be the issue with the water retention if over watering.
Your plants are on their 4th set of leaves and appear to be in need of supplemental food. A well balanced Organic or whats available to you that has an even balance of N.P.K. will do the trick. If you intend to plant outdoors in the ground, I would repot in a lightweight potting soil. Fox Farms products are pretty good, but there are others. Going from a "soiless mix" to the "dirt" outdoors can be a shock to the plant, unless you mix the two mediums together.
Sorry for the rant. ....there are alot of varibles with the indoor grow, humidity, temperature, air flow also play big factors.
Your plants will be fine, back off of the water, foliar feed with Epsom Salts (1tsp diluted with water in a qt misting bottle) and same with Fish Emulsion....for starters.
That should do the trick.
Good luck with the process,
Greg