All is not lost, in fact, your Dendrobium looks ok. The first thing I would do and immediately, is to re-pot this and get rid of the spaghnum it's in. That is spagh., right? Straight bark with some sponge-rock and charcoal or any quick drying medium will work well with this. Or, you can mount it with a little spaghnum till the roots start adhering to the mount. If you pot it, keep it on the dry side and a smaller pot would probably be advised, even if you have to (gently) get all the roots in the pot. Dend. easily grow roots so if you lose a few older ones, not a big deal.
Good luck with this!
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