Orchid with hole in spike and other problems.

[Jema17]

Hi guys/gals. I'm new to the forums so bear with me. I was given an orchid as a gift not knowing what it was other than a phalaenopsis. I've had a little experience growing orchids (years ago). I gave up orchids because of school, and my friend was so intent on cheering me up she bought me an orchid. My first orchid in years. I was so excited I didn't think about why my phalaenopsis was blue... Later, once I was alone with my thoughts did the orchid's coloring start to puzzle me. I looked up this orchid's origins to realize I have a 'blue mistake' on my hands. Well, the orchid is healthy for the most part some over watering that it came with. This is not what is bugging me.

First problems: I noticed some little blackish bug running around the roots as I was checking them. I couldn't get a pic of the little devil, but I narrowed it do to a potential thrips issue.I have never dealt with thrips before, so I lurked on this forum to find out what I should do. I did the water/soap/oil mixture treatment and thought that was that. None of the bugs have shown up again that I can see. I thought I got the problem before it became a Problem. I also noticed some of the phals aerial roots had cracks and I put cinnamon powder on the cracks. The cracks healed, bugs gone, and the over watering is under control. This was three days ago.

Now: I woke up today to bring my 'blue mistake' phal inside from the solarium and found a hole in the stem. As far as I know it wasn't there the day before, but I could be wrong. I put cinnamon powder/water paste on it immediately and started to check the plant again for other issues. There are new cracks on different aerial roots and some of the roots are dying back again. I think the roots are still suffering from the over watering. Now, the flower petals also have indentations on the backs of them, but I think that is from age.

I'm not sure what to do. I feel a little out of my league since I've only just got back into orchids again, but even then my knowledge was still beginner level.

Do I cut the stem? Do I wait and see? Re-repot the soil because of the soap/oil treatment I had given?