The concern with all orchids is keeping them moist without suffocating the roots. When we water, most just pours through, some (very little) is immediately absorbed by the plant, some is absorbed by the medium itself, and some is held in the spaces within the medium. It is that last aspect that's the problem, as that restricts air flow and suffocates the roots, killing them.
Sphagnum compresses easily, increasing that suffocating blockage, so I have all of my phals in loose sphagnum, and I set them in a tray of water, so it is wicked upward without compressing it.
Even the best sphagnum should be replaced frequently (I do so every 6 months or so), and I always use a very dilute fertilizer solution, so buildup is of no concern.
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