Cycnodes with rotten bulb-new purchase
 

I just received this orchid in the mail and there's a big problem with it. I've attached pic's. So the psuedobulb is rotten. There are 1 or 2 viable roots from it but its hollow. There is a good healthy new growth. However, the grower used a rubber band to secure the roots of the new growth to the rotten bulb.
I don't know what to do. Should I try to remove the new growth from the psuedobulb? Or just pot it Please help!
Thanks

I can't really tell what's what... is the newest growth attached to the older growth? Is it coming from the base or higher up the pseudobulb? The newest growth looks healthy, which is the most important thing.

Don't remove anything. Remember, the old pseudobulbs of Catasetinae do die... they are the reserves until the new growth (with new roots) develops, then it shrivels to nothing. A mature plant will keep pseudobulbs for several years, but those are what the plant uses to keep itself going through dormancy. So, with new growth and new roots coming along, just wrap in some more sphagnum and stuff into a pot.

So its okay if the psuedobulb is rotten and hollow? That's my only concern.

I have never had a problem when an old pseudobulb rots, it just eventually dries up. If there are others, I might clip it just for aesthetics. But on a young plant, I would not be inclined to do surgery, in case there is still something present that the plant can use. There are folks on the Board who know a lot more about Catasetinae than I do... I defer to those with more experience.

If the young growth is still attached to the dying pseudobulb, yes, I would do what Roberta said. Pot up the whole thing and let the old pseudobulb dry up. Be extremely careful with the new roots. Don't try to remove any old sphagnum. The best thing to do would be to gently wrap moist sphagnum around the existing root ball, and squeeze it into a new pot.

In the future, to be safe, don't remove Catasetums from their pots during the growing season. Don't remove old medium from around their roots unless the plant is fully dormant and has no green growth. Rotting old growths will not affect newer growths so long as the roots are undisturbed.

Thank you