This is one of two almost identical Paphiopedilum (ii?) I was given in December. (Their flowers are different) They came from the same supplier, I bought the second because it was half price and the gift one had been so nice. Today the dog knocked the one in the picture over. Despite being in a chipped mixture the roots were as shown all near the top of the pot. I have gently separated them and repotted back into the same mix (off the floor!!!!) into the same 4 inch pot.
Now I am wondering three things:
a) Should I tap out the other one and see if it too is stuck at the top of the pot?
b) Should it be growing in a finer mix to allow the roots to penetrate it rather than going out to the edge and then round and round?
c) Should I be growing it in a very wide shallow container to let its roots spread out more?
The main reason your plant is doing this is because it doesn't like the mix below the roots. The mix is either, too wet, too dry, too acid, too alkaline, just purely rotten. A new mix should fix everything.