Too much water, dirty hands handling the moss, dirty container the moss was placed in, or the moss itself was dirty. Mold needs moisture, air, food and correct temps to grow. The food is "Any Organic Material." So it is possible for mold to grow on moss.
Is that a bad thing? Not all molds are dangerous. So maybe yes, maybe no.
Mold grows from spores. The spores had to come from somewhere. Perhaps it was already in the Moss, perhaps the spores were on your hands, or in the container, or somewhere in the cage.
I've been using sphagnum moss for decades and have never had a mold problem. But I can see how it could happen.
My suggestion would be a thorough cleaning of the cage, your hands, a new bag of moss, a different container and try it again. Don't use too much water. Just lightly mist the moss and squeeze it out. Re-Mist it every 2 or 3 days and replace it weekly.