I would take out what you can and back to lfs and wait for tank to finish cycle. You might cycle again with fish dieing. What kind of damsels are they? Are they the dominos (black with white dot)? Those ones are mean. I had them as tank cyclers and were the meanest of the damsels. the yellow tails werent as bad. Also damsels are a b@#$#$ to catch.
Some tanks take a long time to cycle, my 60 gallon was about 3 months, before I was confident everything was ok. Also you dont want to put a bunch of fish in at once since its a new tank.