Can I reuse S/H media if previous orchid rotted from bottom of bulb and molded?

[Niki]

I purchased a clearance orchid that looked okay. I was planning on repotting it. After about 3 weeks, I noticed one of the bulbs was turning brown and soft (rot) from the base of the pbulb. I decided to repot before it spread, and found that the root system was mostly gone. But, there were some roots that look okay, but not great, so I left those on (which may have been my mistake). I removed the rotting bulb, which ended up dividing the plant (which was fine, it had 10 or 11 pbulbs when I purchased it).

I wanted to try and repot into S/H (although now folks tell me this was a bad move). Following rays advice, I covered the base of the plant in a plastic bag, using clips to secure it to keep the humidity up around the plant about 1.5 weeks ago.

Today I noticed that a couple more pbulbs had started rotting from the base up and that mold had developed on them. I decided to try putting the plant in sphag-n-bag as a last ditch effort to save this plant (now two, due to division)

When I pulled the oncidium out, all the rest of the roots had turned mushy. I removed the rotting bulbs, removed ALL the roots (since there were all completely rotten) and am soaking the plants per sphag-n-bag instructions on ray's page.

Can I use the S/H media this orchid used to be in again? Or will that risk spreading rot to another plant? Is there any way to clean it? I'd just hate to waste all that good S/H media....