Problems with Masdevallia tovarensis

[Tindomul]

Hello all. For a year I have had a Masdevallia tovarensis in my orchidarium. Unfortunately during that year it did not grow and in the last week has dropped 10 leaves leaving me with two plant lets with 3 leaves between the two. Right now I keep it in an open jar that I use to submerge the roots in water for 15 mins in the morning and dump out the water and hopefully the jar keeps the humidity up high enough to keep the plant comfy and aerated.
(Deep breath)Sooooo, I plan on putting it in some sphag and rooting hormone. What does everyone think? Should I keep it in the jar until I see new roots and then sphag it, or attempt my first sphag and bag? Or should I go ahead and pot it in sphag?
I see no signs of rot or any other disease. I'm thinking it just wasn't in a happy place for too long a while.