It looks to me like some sort of rot but I can't be certain.
Whether rot or fungas I would remove that growth before it can spread to the rest of the plant. I would then use cinnamon on the cut to try and seal the wound.
the plant looks like its starving for humidity and the new shoot dried up....it was too dry..In the pic you had just watered it? I'm guessing in hopes one these days Ill be right
the plant looks like its starving for humidity and the new shoot dried up....it was too dry..In the pic you had just watered it? I'm guessing in hopes one these days Ill be right
I watered it the day before I took the photo. You can see some roots that are still green from that watering.
I removed the affected area and sprayed with Physan. The next day I dusted with cinnamon.
That looks like fungus to me. The plant looks very healthy otherwise. I get that kind of fungus on new shoots occasionally. Water dripping down from a tree or a trellis can deposit some fungus spores in the folds of the new psuedopods. I usually don't even cut it off but I know that many people say that you should. Keep the plant drier than normal for a while. I spray with a wide spectrum antifungal once a month during the summer and I still occasionally lose a new psuedobulb to fungus. There's a good chance that it won't spread to the rest of the plant. Good luck.
Sorry, I should have mentioned that it might be a good idea to remove the dried out coverings from the psuedobulbs. Fungus and insects can get under those sheaths and flourish undetected.