Rear tire wobbly around the bearings.

So I have a Huffy Cranbrook beach cruiser that I bought and repaired/upgraded. Well, the chain ate a chunk out of the back tire because the axle slipped a bit letting the wheel tilt. I tried cranking down axle bolts but ended up widening the slot the axle fits in... So put in some heavy duty washers slapped it back together aaaand the sprocket didn't seem to be lining up well. So I pulled it and flipped it so that it dishes out and things seem to line up better. The problem comes in with the coaster brake assembly that I had to take off the hub to get the sprocket off. When I put it back on I kinda tightened it up to, "F you you f'n bike," normal tension and I noticed a lot of cogging with the bearings. I loosened it until it would turn smoothly. It test rode fine but I did notice that the wheel has a bit of play in it. So am I OK riding like this or do I need to take the whole thing off and repack bearing/replace the hub, or what?

TLDR: Overtightened coaster lever back on and now wheel has some play in it.

I bent the heck out of the brake arm to get it clear. But,"Tighten the cones," is an alien concept to me. Like I said, I loosened the bolts until the axle would turn freely.