Root Rot on Lysudamuloa Yi-Ying Sakua

[deerfern]

I just purchased this lovely Lysudamuloa Yi-Ying Sakua from Ebay. Unfortunately, I believe it has root rot. When I received it, it was potted in pure sphagnum, which partially covered up the problem.

What do I do for this guy? Can I save this cute plant? Or is it destined for Orchid Rainbow Bridge?

I pulled off all the media. I washed the rotted roots with warm clear water, but they stayed black and show some strings. One root near the base was black, but whitish on the end. When I touched it, it was squishy and pulled right off the base. Root rot for sure.

I put the orchid back, with no media, in the now bleached plastic pot it came with, with some sytrofoam peanuts to hold it up. I then wrapped what appears to be decent new roots in slightly moistened AAA New Zealand sphagnum for the night.

I am hoping I can get a reply from someone knowledgeable here on what to do?

The only thing I've ever used for rot is cinnamon. I think this one needs more serious help.

Should I use a sterilized utility knife, scissors, and cut it all the way back to the base? How will it stand up in whatever media I put it in? What media should I put it in? What fungicide should I use, if any? Should I let it stay in dry media or moist?

I can't tell you how this plant was treated in any way as I literally just got it 3 days ago from Ebay. If I missed anything I can tell you, let me know and I will try to answer best I can.

Any/all help is greatly appreciated, and thanks!

P.S. - I can't get the pics to come out upright/portrait. Tried rotating and re-saving but no joy. Any insights welcome.