Hi Pennytupence, welcome!
I looked your tank up and it's a pretty thing! A nice size at little more than 30US gallons.
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there are 2 lots of sponges in this tank and i may have put them in the wrong order.
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If they both came out of a filter, they don't have to be in any order. I don't think that is a problem at all.
I'm sorry to say, I believe your tank is going through a mini cycle.
I'm assuming the sponges came out of a filter that was on an active tank.
Unfortunately the sponges
may not have had enough good bacteria in it to sustain 12 mollies.
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Sorry if i haven't explained it very well,and is there anything i can do to get the levels down.
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You've explained it fine.

What you can do to help now are partial water changes.
You can also add Prime daily, after water changes, to help offset any ill effects of the cycle you are going through.
Keep up the water changes and in time the tank will settle down.
Best of luck,
alicem