It's a common mistake to think that when repotting an orchid it will need to go up a pot size.
With other plants this is usually the case, you repot, leave all the old medium where it is and add more arround the edge to fill the new bigger pot. The garden center might not realise the difference with orchids and give you advice on general house plant repotting.
A relative of mine recently made this mistake and left the previous Sphag in place and moved it to a larger pot. Luckily she gave me the plant a few days later and I quickly corrected the mistake and removed the now stinking sphag and put it in a much smaller pot.
When repotting a Phal you need to remove all the existing medium and then put it back in a pot just big enough to fit the roots in. This is often the same size pot, sometimes a smaller one if some of the old roots have rotted.
To be honest I
have made the mistake of not moving up a pot size when I should have done. I should have realised when I had so much trouble getting it back in the pot that it needed to go up, but it's doing well still in the old pot so it can wait till next time I repot. This one SHOULD have gone up a pot size.