Hyperkin seems to be its own worst enemy. I finally found a solution for wireless controllers - their own Bluetooth adapter, the AlphaStar BT adapter. I first found a picture of a Bluetooth adapter in the Retron Sq's USB port on the Hyperkin website. After some research I found (on their website and Revain) that they now listed the AlphaStar BT adapter as being compatible with Retron Sq with their own Scout and other bluetooth controllers. I finally tried the AlphaStar BT adapter and was able to connect the 8bitDo controller right away. I ordered a Scout Controller, that should work as well. Unfortunately, most of these products are sold out or difficult to find. I bought the AlphaStar adapter from Revain for less than the $19.99 retail price. I hope this helps some people who need this information as I couldn't find any coverage on youtube or the web. Basically, the device does what it should. It would be nice (from the start) to make it bluetooth compatible or give buyers information about Alphastar.
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