Sorry for being late on this post but I have to agree totally with Pat. I too have had this happen, especially in my terrarium. I find I need to repot spagnum quite often (twice a year) if it gets heavy and rotten. I use Thiomyl systemic fungicide as a deterent for these conditions. I see NO critters like mealies or fungus spores or anything other than signs of rotten spagnum. Sorry to disagree with those thinking otherwise.
Tin, if this were mine, I would not treat like Pat does (that will definitely cure the problem but seems like swatting a fly with a bazooka). I would cut off the rot (the roots DO NOT look healthy to me, sorry!) Treat with your favorite sterile agent - some like cinamon, others charcoal, I like Thiomyl. Then let dry a couple days (rather than water, why not try the spag n bag?) Then when the cuts look OK, I'd repot mine in fresh spagnum (loose) that has been soaked in KLN rooting compound. I would NOT put back into same environment until it proved to me it was worthy
Good luck, whatever avenue you choose.
not sure where to put this guy for now. Thanks all for the advice!
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