Phalaenopsis root rot Crisis

[Shardless1337]

Sorry for posting a story but the events may help understand the situation.
A few months ago a neighbor of mine, while moving out of his apartment, decided to give me his Plalaenopsis. The day that he was bringing the plant to me he dropped it shattering the Pot and severely damaging the plant itself. I rushed to the nearest Home and Garden shop and purchased a Terracotta Orchid Pot, Orchid food and the same Orchid potting Mix as used before (a charcoal and bark mix). After a month or two of TLC the Orchid seemed to perk up and start to put out new leaves. Three days ago I started to notice that the leaves were becoming limp and leathery, and read that root rot could be causing this so I repotted the orchid. Removing the dead roots meant taking the roots down to very little good roots and a few what looks like incoming roots. I am concerned for the plant and would appreciate any advice. This is what I believe to be a large Orchid and many seasons old. I live in a very dry part of the South so I have a humidifier in the room (around 30-40% humidity) and the Pot sitting top of pebbles in a tray of water. I use distilled water with orchid food.