Paphiopedilum with holes in the leaves
 

My Paph's leaves are "shrunken' with holes in them- see picture and I don't know what wrong. Please help

What is the temperature of the room where you grow it? Do you have it near a window?

It doesn't look like a Paph. to me, Phaleaonopsis would be a better guess. I don't know what caused the holes in the leaves but it is severely dessicated, due to either underwatering or lack of roots. Broken down mix could cause loss of roots.

Could it be a systemic fungal infection? Yellow or black spots turning into holes is a described symptom of fungal disease. It would explain why the plant is so desiccated.

What I see is a phalaenopsis that is desiccated, probably due to a poor root system, that had been ravaged by insects, bacteria and fungi.

If nothing else, you need to understand that orchids, in general, do their respiratory gas exchange through their roots, rather than their leaves, as is the case for terrestrial plants.

The potting medium needs to retain moisture, but must also remain open and airy, so those exchange processes are not stifled, which leads to suffocation and death, giving the plant no way to take up water.

I agree with Paphluvr. It's a Phalaenopsis and it's been severely underwatered. When a leaf gets like this it is often so wrinkled it will not plump up when watered properly. Newer leaves will be normal if it's treated properly.

Temperature is important. Phals are warm-loving plants. Getting a sick plant through the winter in a cold house is difficult.

The pattern on the sick leaf is the same of the water drops on the other leaf.
Is your room cool? Or do you have the plant near the window?