Miltassia Dark Star seedling question

[farley101]

I acquired a small community pot of Dark Star seedlings this summer, thinking it would be a fun project to transplant and get some nice plants. It seems I have bit off more than I can chew with this, as the plants are doing very badly and I'm not sure any will survive. They came in sphagnum, so I transferred them to small 3" pots in sphag. Plants are about 2-3" tall. Initially they seemed to do alright, but lately there has been some serious issues. Most are showing signs of severe dehydration with wrinkled pseudobulbs and leaves dying. I dug into one of the pots that looked the worst and the roots seem pretty good, but I believe the plants may have gotten swamped at some point and are struggling to bounce back. I have them in a humidity tray that I overfilled and they were waterlogged for about a week while I was gone on a work trip. I know they need damp/moist and cool, which is easy with the sphag, but that was too much.
Not sure what to do to fix this, they are in the living room with temps between 58-64 and humidity around 35-40%. I could put them in my mini "greenhouse" that is heated to 70-72 and has 50-70% humidity but not sure if they'd like that either.
I'd love to save these little guys but it'll be another learning experience!