That's bud blast. It's not life threatening, but it ruins the blooms for the season and it can signify bigger problems. I know that buds can wilt when exposed to a sudden change in temperature. Maybe it happens if the plant stays too wet also? Is the sphag really compacted or is it loose and airy? Sounds like maybe your Phal needs to be repotted in fresh medium. Hopefully someone with more experience will chime in.