He is frightened because he has not been tamed yet Jay. In order to tame him you have to take him out and get him used to being handled. The longer you wait the harder it will be. As long as the cage is a reasonable size and he has a wheel, toys etc don't worry about the cage. A lot of hamsters bar chew and it is a hard habit to break but unless he is hurting his nose he may grow out of it. Give him a big dog biscuit to chew. Have you got a secure room like a hallway where you could shut all the doors, put the cage on the floor and get him out? He is not ready for free running yet until he is tame and handleable and you can pick him up without him running crazy. The most important thing is the hand to hand running through the fingers so he feels your hands round him. If he escape have an ice cream tub ready and put it over him. Then lift it up and pick him up again. You need to get in the bath tub with him. Have him in the ball or tub then let him walk out and crawl over you while you stroke and hold him. He will not be able to climb the sides of the bath tub if he goes skittish.
All hamsters store food in their beds. It is quite normal. Hamster is from the german word hamstern meaning to hoard or store! Do not remove his food and always put a little in there when you clean out so he does not feel it has all gone.
Keep trying.I know you can do this
