I figured out what happened. I had scaled the rabbit down at some point. When you scale the rabbit down the hairs get ticker and they clump together in a way that resembles a more cartoony fur. I went back to a previous save with the rabbit un-scaled and the fur is much more realistic now.
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I can see some grooming issues but this looks very realistic 
Yeah, I tried to make it look messy but I ended up with some weird spots xD