I kinda figured. Seems to be ok for now. Must be some genetic defect.
Found a thread with some similar seedlings.
http://www.thehotpepper.com/topic/14186-albino-seedlings-chlorophyll-deficient-cotyledons/
Unfortunately, the results were never posted. I may try giving it some epsom, see if it helps. I don't need the plant but it can be a fun experiment.