When you got increased velocity from lowering the hammer spring setting it means it was badly tuned as you are thinking (way too much hammer spring). When the first shot velocity (or first several shots) is low, I believe that means the hammer spring is a bit low for the regulator setting. So you went from too high to too low. If you don't mind the first few shots being lower in velocity it won't hurt the gun to be tuned this way but if you want the first shot to be consistent with the rest you need to give it a little more hammer spring. I will use my newest gun as an example of what I am talking about.
My Caiman came to me with a regulator setting of 100 bar (it does not have a gauge but I watch when it falls of the reg and I have also had it apart and looked at the Huma regulator). With the wide open air path it has, that can give me a velocity of as much as 940 fps with 18 grain pellets, it's favorite. Initially I turned it down to around 875 fps because I think that's fast enough and because I want them to stay stable. When I did that, my first shot velocity would be lower than the rest of the string (20 fps or more). The gun shot well, I just had to give it several shots to settle in. More recently I've given it a bit more hammer spring and it is now shooting at about 900 fps. I shot a few shots last night and the first shot was less than 10 fps lower than the highest velocity. I did a 20 shot string with it at these settings and got an ES under 8. So it likes this tune better. I have not shot a 30 yard challenge score better than I shot with the 875 setting but I've shot another 199 with it tuned this way. I'm hoping for some time when the wind is calm to see if I can't get a 200, the challenge is both the wind and me, I am pretty sure the gun can do it. I prefer to have the gun shoot the first shot at the same velocity as the rest of the string.
5% under the peak is the "normal" recommendation for velocity but I've found sometimes my guns want a little different velocity. But I think it is quite important to establishing a good tune to know what your peak velocity is for a given regulator setting and then trying hammer spring settings a bit below and also possibly slightly above that value to see what the gun likes best. My Avenger seems to want the hammer spring to be slightly above the point that gives the highest velocity. I think it is a little bit more accurate tuned that way. But my other guns want the hammer spring turned down slightly from the peak. Not always 5%, my P35-25 wanted about 3% at its previous tune. I think it is normal to set the hammer spring to give a velocity a little below the peak.