Yes give it time to settle. Mist it lightly (dont soak it, wetness isn't the same as humidity) , and make sure you provide ventilation. A guideline I've heard is min 2 sq inches of mesh, burlap, fiber paper, or tulle fabric.
Feeding hydei, you'll want tulle, or fiber paper, to keep them inside.
The problem with a big enclosure is that it is harder to hunt. Prey density. A smaller cup that is sufficient for it to live in keeps prey closer.
I use untreated cotton pads as a substrate to hold humidity, releasing it slowly.
For scale, here is how I keep my L4 ghosts. All small nymphs, actually.