Generally, you are not supposed to take your record at a lower weight class, up. But also the coaches in the meetings that I have been in charge of and been to, recognize the kids that need to be seeded.
The purpose of seeding is to separate your good wrestlers. Often times, they will have met each other within this season and it often seeds itself. Though it is not an exact science! If they are seeded properly, your first and second wrestlers meet each other in the finals and the third and fourth in the consolations.
Note: I often look back at the end of our subs and we do a pretty good job!