Orky don't be upset, we've all been where you are right now. Your phal is probably experiencing a (let's hope mild) case of root rot probably because the moss is packed so tightly that is holds too much moisture over a long period of time suffocating and then rotting the roots. But not all is lost.
You must repot your phal ASAP. preferably in a different media that will allow more air flow for the root mass.
you must cut back/off all roots that are brown and mushy, give it a soak in hydrogen peroxide and then rinse with water and sprinkle cinnamon (to stop the rot) before repotting. Assuming you did not lose all of the roots, just put it in a warm and shady place and hold the watering for a couple of weeks.
Here's a link that is very illustrative when it comes to repotting:
http://www.easyorchids.co.uk/site/content/view/27/69/
If you lost 90+% of the roots, you can still save it by attemping the sphag and bag, here is Ray's site with very detailed info:
Sphag-n-Bag
Either course of action I wish you the best of luck. Hope this helped
Keep us posted!
P