Watch your water to avoid rot indeed, make sure the plants fed well, give it lots of light, and your oncidium will produce nice flowers.
Bec of the large bulbs Oncidiums can stand quite a bit of drought so underwater is always better as with most orchids. You arent going to kill it not watering it for a few days a week or so to let it dry out some.
If you have active roots you could take that opportunity to change out the media and re-pot fresh in case theres something else lurking down in there that just cutting the bulb out might not prevent or cure.
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O.C.D. "Orchid Collecting Dysfunction"
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