In a nutshell, you need the Ammonia to get processed by bacteria to convert to ----> NitRITE, which is still very bad for fish, which is then fixed by bacteria again to ----------> NiTRATE. When ammonia and nitRITE are zero, and Nitrates are nominal (this varies as to what people find tolerable in the hobby and acceptable for fish), you can effectively call your tank "cycled".
However, your tank is "cycled" (referring to the nitrogen cycle) for the amount of waste ammonia being produced. In other words (and crude words at that) if you are creating 1 grams-worth of waste ammonia, your biome (your habitat) has the ability to turn that 1 gram of waste into nitrate. In bacteriology, it's called the carrying capacity. Your beneficial bacteria has the resources to carry the weight and process 1 grams worth of waste. IF you upset it quickly, such as quadruple the amount of waste overnight, you'd effectively create another cycle having to increase the amount of beneficial bacteria to get the extra 3g of ammonia waste converted, meaning you'd have to wait for enough time to grow that much more bacteria.
So, this is why we add fish/livestock bit by bit as to not create WAY more waste than our tank bacteria can handle effectively. We can help our tank along of course with bacteria additives, but essentially that's the quick breakdown of cycling. The real savvy experienced would poke a few holes in this, but my response is meant to explain what you are looking for and what we are trying to accomplish in cycle.
With ammonia being that high, your shrimp can't be liking that environment.
