Myshka,
Did you repot both plants or just the one (in basket)?
When you repotted were there any good roots or were most rotted off?
Orchid126 is right, that basket is too large for the plant. If you don't have many viable roots it will just sit there and either rot some more or get too dry because there aren't enough roots to support it.
If you didn't check the roots on the other plant it's a good idea to do so. You might find rot inside that sphag also.
Maureen
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