Does diluted kelp burn seedling leaves. I applied some to my eggplant and the leaves turned yellow, curled upward and dried out. I've read it's not supposed to do that?
Diluted by how much? From your description, your seedlings do sound burned. Seedlings, especially those grown inside without the benefit of wind, fluctuating temps, to 'toughen' them up are especially sensitive - much more so than those growing in your garden.
The usual recommendation is to apply products sparingly, beginning at 1/4 the normal strength.