I have a Zygo Jumping Jack (currently in bloom). Looking at your Zygo, I think that when you water, try not to get the water on the leaves and pseudobulb and maybe add some extra Calcium so that new growth is more resistant to rot.
My Advanced Australia had some issues with rot when I first received it. I removed anything that was infected and began to make certain the Zygo got enough Calcium/was careful not to get any water on the leaves and pseudobulbs until I had new growth. It has recovered nicely. The other Zygos are pretty happy, too (I have a second Jumping Jack and a Artur Elle x Blue Blazes).
As for the medium, they came in bark, I put them in NZ Sphagnum moss for six months and now they are in the 1/4 inch lava rock. Before I had air conditioning, I had Zygos for a few years and had them in both large lava rock (watered twice a day) and potting soil and they did fine until a really hot summer. I have to conclude that the ones that have both terrestrial and ephilyte ancestors do not seem to be fussy about the medium.
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