‘Transplant Shock’ is the sudden collapse of seedlings when potted on and is due in part to a sudden change in temperature of surrounding area, compost & water.
Chillies & Tomatoes are prone to this at seedling stage but to minimize its occurrence we make sure that the day before transplanting, the seedlings have had adequate water and the potting on compost & water are placed in the greenhouse to warm up. When transplanting we work quickly popping the seedling back into the heated propagator as soon as it has been potted on & watered.
The photos show chilli seedlings 1/2hr after potting on drooping with transplant shock and then 2 hours later when they have perked up. Generally there is no significant check to the plants growth and they will continue quite happily as long as they have been transplanted quickly, watered & returned to the conditions they were in.