Based on my experience, there is a lot of misinformation here.
It's NOT that the artemia cysts are introducing the hydroids, it's the fact they thrive on the nauplii that are fed to dwarfs and fry of standard seahorses. The hydroids are introduced via non sterilized things added to the tanks they end up in.
If you start with a dwarf tank completely sterilized, and NEVER introduce anything non sterile, the hydroids are not going to appear. However, introducing live rock, macro and corals ARE sources that will introduce the hydroids.
Also, the description of the artemia cyst leaves a lot to be desired. I've never seen cracks on the cysts but they do have a "shrunken appearance until hydrated.
When incubated in seawater the biconcave cyst swells up and becomes spherical within 1 to 2 h.
After 12 to 20 h hydration, the cyst shell (including the outer cuticular membrane) bursts (= breaking stage) and the embryo surrounded by the hatching membrane becomes visible. The embryo then leaves the shell completely and hangs underneath the empty shell (the hatching membrane may still be attached to the shell). Through the transparent hatching membrane one can follow the differentiation of the pre-nauplius into the instar I nauplius which starts to move its appendages. Shortly thereafter the hatching membrane breaks open (= hatching) and the free-swimming larva (head first) is born.
The cyst shell consists of three layers:
· alveolar layer: a hard layer consisting of lipoproteins impregnated with chitin and haematin; the haematin concentration determines the color of the shell, i.e. from pale to dark brown. Its main function is to provide protection for the embryo against mechanical disruption and UV radiation. This layer can be completely removed (dissolved) by oxidation treatment with hypochlorite (= cyst decapsulation.
· outer cuticular membrane: protects the embryo from penetration by molecules larger than the CO2 molecule (= multilayer membrane with very special filter function; acts as a permeability barrier).
· embryonic cuticle: a transparent and highly elastic layer separated from the embryo by the inner cuticular membrane (develops into the hatching membrane during hatching incubation).
The thing artemia cysts are known for is the contaminants that adhere to the cyst surface, the most problematic being bacteria like the vibrio species, but many others as well.
A major problem in the early rearing of marine fish and shrimp is the susceptibility of the larvae to microbial infections. It is believed that the live food can be an important source of potentially pathogenic bacteria, which are easily transferred through the food chain to the predator larvae. Vibrio sp. constitute the main bacterial flora in Artemia cyst hatching solutions. Most Vibrio are opportunistic bacteria which can cause disease/mortality outbreaks in larval rearing, especially when fish are stressed or not reared under optimal conditions. As shown on Fig. 4.2.5., Artemia cyst shells may be loaded with bacteria, fungi, and even contaminated with organic impurities; bacterial contamination in the hatching medium can reach numbers of more than 107 CFU.ml-1 (= colony forming units). At high cyst densities and high incubation temperatures during hatching, bacterial development (e.g. on the released glycerol) can be considerable and hatching solutions may become turbid, which may also result in reduced hatching yields. Therefore, if no commercially disinfected cysts are used, it is recommended to apply routinely a disinfection procedure by using hypochlorite (see worksheet 4.2.3.). This treatment, however, may not kill all germs present in the alveolar and cortical layer of the outer shell. Complete sterilization can be achieved through cyst decapsulation.
Now, as for nauplii size, there are some fry unable to consume the newly hatched (actually should be enriched Instar II nauplii) artemia, usually the pelagic seahorses, dwarf fry and most benthic fry of standard seahorses have NO problem ingesting the nauplii.
If you are REALLY interested in artemia, the best authority for them IMO is here:
http://www.fao.org/3/W3732E/w3732e0m.htm#4.1. Introduction, biology and ecology of Artemia The italicized parts above came from this document.
If you want to see what cysts really look like, google gives us:
https://www.google.com/search?q=microscopic+view+of+artemia+cyst&tbm=isch&source=iu&ictx=1&fir=f5YfdYU-oO5EMM%3A%2C367WHck-a_WqeM%2C_&vet=1&usg=AI4_-kT95zlB2e5Tsy8RSYvpd6lM5zddKQ&sa=X&ved=2ahUKEwjeiPjSmcrpAhVOMt8KHXirDQgQ9QEwCnoECAoQBQ#imgrc=f5YfdYU-oO5EMM: