Okay, examples...
Here's one that could have gotten a crown in the Ugly Orchid pageant two or three years ago. It was similar to your Ugly... a rotted crown and two basal keikis formed.
And this is an example of one I repotted to upsize to that larger pot idea of Ray's. Note that it's putting out new roots, and some of the aerial roots I stuck into the LECA pretty much are stalling, but providing enough hydration while it starts new growth. This one is very special to me, and I'm giving it anything it wants. It still bloomed this year, but only one spike as opposed to the two it usually grows.
---------- Post added at 11:41 AM ---------- Previous post was at 11:20 AM ----------
The interesting thing about the basal one is that it was originally a harlequin grocery store plant. When it transformed into losing the crown and two basal keikis it now randomly puts off different colored spikes on each of them. That's why I left them together, just because I think it's cool. I'll see if I can find the examples of it here when I get another minute.
Meanwhile, your ugly... I would cut off the crown approximately where shown, cut off the neck approximately where shown. Put a sealer over the wound from the crown...some hot glue, silicone caulk, dripped wax (I've used all three). Then plant it down in a little wider container with both the basals still attached to what's left of the neck, putting remaining roots or most of them down into the LECA.
---------- Post added at 11:48 AM ---------- Previous post was at 11:41 AM ----------
Okay, found the thread about the basal keikis of mine. Here's a cut/paste from that thread...
Now this one's super interesting. It was one of those grocery store Phals that fell into my husband's rescue shopping cart for me at least six years ago. It's survived mounting, dismounting, semi-hydro, remounting for a terrarium environment (a failed experiment) then back to semi-hydro. When I moved it back to SH, there were no leaves and about three semi-decent roots. When it grow back, it came back as a double-crown... or two basal keikis, although it appeared more as a double crown to me.
Somehow, it undivided it's hybridity (is that a word?) and one is still the original white w/splash spike, the other spike is a white with pink blush. I thought that was pretty darned strange, weird, and kinda magical...