Hi, Rose,
It’s great to hear that you’ve gotten the wobbling under control and he is better.
I’m not able to picture what you’re describing – is his habitat outside? As a House Rabbit site, I’d urge you to check out our habitat photos and forum to see samples of good indoor housing set ups for him.
You never need bedding – just litter in a litter pan. A cover of his space with something like a very low pile rug or better yet, seagrass mattes, is a good way to cover a floor for him. A large cage, with a plastic bottom, is just fine, too.
Keep loads of hay available in a hay bin for him. A simple willow basket is good for serving his daily fresh hay. He will pull it out and scatter it, but that’s fine.
Get him off the food (bedding or ground cover?) with any seeds or things added totally. He needs very plain, ground timothy hay type of pellets. Oxbow makes them, or Kaytee, but not any foods with the added bits that you see in the big pet stores. They sell the healthier kind too, so change his food out to simpler, healthy hay and pellets.
Keep him happy with the fresh greens daily, too.
You don’t need a salt lick. I know my bunny used to like it too, but they are totally unnecessary and just make them more thirsty than they need to be. Fresh water daily is great.
If you see him pulling up anything, just distract him from it, either with a bit of good food or playing. A little mix of white vinegar and water in a spray bottle will smell lousy to him and deter him if you spray places he chews that he shouldn’t, like furniture or baseboards.
Read our Bunny info. section to really learn a lot about how to set up your home with him so he can continue to have a happy, healthy life with this wonderful person who rescued him!

I agree with Pam on all points.
As to the seeds sprouting in the wet area the growth would not be as big a concern as mold developing. Mold spores are no good for any of us and can make you and bunny very sick. It is essential to keep their living area dry and clean for that reason.
I have an area in my garden where i have thrown some of their old hay and it sprouts lovey grasses from the hay seeds. I regularly feed the a handful of it and they love it and it does not do the any harm (I just make sure I wash it well and never use poisons in my garden)