From what I can see here, this is an old stem which lost leaves. The new leaves look ok as far as I can see on my monitor. It has been through a lot and with the new larger bark the size of the pot shouldn't matter for now. Leaving it where it is and once re-established, transplanting it to a smaller pot should make this a nice plant. If left to recouperate where it is it should throw a spike in about three or four months. I'd just leave it be. Not water too much. Keep it warm.
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