Fortunately, this is a species that grows new leaves each spring (and tends to lose them in the winter.) So if the pseudobulb is firm and roots are good, it'll do fine.
For caterpillars... fortunately the treatment is not toxic to anything except larve - BT (bacillus thuringiensis), Thuricide is one brand name but there are others. Dilute according to directions, put in a spray bottle, and give your plants a good bath. (It's also used for tomato worms, the fruit can be eaten on the same day it is sprayed, it's totally harmless to humans. It's even harmless to adult insects, so it wan't hurt bees either). It is SOOO disappointing, I feel your pain (I have a Dendromium wilsonii that was covered with buds on 4 growths, blooms on bare canes. And then I had buds only 2 canes, only 1 had allits floers I found the little bastard and took great delight in squishing it.
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