You should get rid of the cypress or cedar bedding. It can give off toxic fumes. Pebble bark or crushed walnut shells would be fine. So would plain hay straw from a bale. Pea gravel would be ok. If the substrate you have there is not giving off a strong odor then it's probably ok.

The pet stores sell cypress and cedar because it smells good to the unsuspecting customer, I can't imagine being a store owner and letting people buy it. It's beyond me how avaricious many of those people are.

BTW I hope your new rainbow makes a full recovery.

Roger