Hi there, welcome
I don’t think you should give up! 1 week is a very short time. I do have some questions that will help me advise.
Was either bun injured in the fight? I mean, was blood drawn? Or just fur pulled? Bunny fights are certainly very terrifying, especially when you haven’t seen one and you don’t expect them, but often they look much worse than they actually are. If no bun was injured, then you can keep going. If blood was drawn, then it would be good to take a break for a few weeks and let the buns cool off a bit before proceeding.
Second, can you describe your bonding space?
It sounds like there are some positives here (grooming is good), but you seem to be moving too fast. It can help to let the new bun settle in for longer, and also to do pre-bonding (where you swap which bun is in which cage). Basically you will want to swap cages every day or so, until it seems like the buns aren’t really reacting to the other bun being in “their” territory (they aren’t just marking all over the place). You will also start to see their behaviors sync up (they will eat at the same time, sleep at the same time, groom at the same time, etc.).
Since this scuffle happened, I think going back to pre-bonding would be a good next step. Once they seem calm around each other in that sense, you can start up sessions again.
You are right that they do need to decide their hierarchy, but it is really important not to let them fight. When you start sessions again, when they get into a nose to nose grooming stand-off, start petting them both and swap scents. Pet them A LOT. This will help them stay calm, and will help start to break any negative associations that formed from the fight. They will eventually need to sort out their dominance, but a big part of bonding is trust. They attack out of fear, so if they can learn not to fear the other rabbit, they will be able to communicate without it escalating to a fight.
Stressing is also a great tool, so I think stressing in conjunction with the petting technique is a good combo (it’s worked well for me in tough bonds).
I’ll also add that if you are doing sessions in a small space, try a larger one. I’ve found disagreements lead to circling and fighting in small spaces, as they have no where to go to escape if they want to.
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The answers provided in this discussion are for general guideline purposes only. The information is not intended to diagnose or treat your pet. Seek the advice of your veterinarian or a qualified behaviorist.