I’m sorry Winston has an eye infection. The cause is often hay, but it could perhaps be the bedding or practically anything that can cause a scratch on the eye, where ambient, otherwise harmless, bacteria can start to grow. The recent neuter has put a little bit of strain on his immune defense, so that could have contributed.
Most of us here don’t really use bedding in the bunny cage or enclosure. Bedding is good in the litter box, because it soaks up pee, but the bun doesn’t really need bedding to sleep on. Its often easier to litter train a bun if there’s bedding in the litter box but not in the “home” area.
Some buns will eat fabric, which obviously isn’t good. The only way to find out how a rabbit responds to fabric is to do a supervised trial run. I have fleece blankets for my bun. I buy the cheapest ones I can find at Dollar Store, because they will get bite holes in them and they’ll need pretty frequent washing.
As for giving him the eye drops, he will obviously not appreciate it, but rabbits do forgive. It would be great if you can get someone to help you hold him when you give the drops. You can make a bunny burrito with a towel to restrict his movements. He will still blink and not be happy about the drops, but as long as you get some of the drops onto the eye, its all good. Give him a really yummy treat after the drops so he gets a good reward.
Here is an instruction on how to make a bunny burrito, with pictures:
http://www.medirabbit.com/EN/Transport/Towel/Towel.htm