A tragic gift: sad phal

[Melody]

This phal was a gift from a very sweet relative. Unfortunately, it's a case of "it's the thought that counts."

The plant looks to be in bad shape. I'm thinking it's crown rot, but it would be nice to have conformation of this. And I have no idea what to do about it.
To make matters worse it's in sphag with no drainage wholes. I haven't dared to check the roots for fear of breaking off the top of the plant which you can see in the photo is laying on it's side barely holding on. I took a photo holding it upright so you could see the damage on the side. It feels quite mushy.

Help!