I go with small bark for Oncidiums. I'm an over-waterer, so I don't mix any sphag in with the small bark, but many people do. The potting mix will stay moist longer with some sphag mixed in, but whether that is the best choice for you depends on your watering habits.
Each individual plant has certain requirements for moisture and air around its roots, and how that is provided is determined by the medium as well as the growing temperature, humidity, air movement and light levels you provide, plus whatever to personally provide in the way of watering technique and frequency and/or misting.
That particular hybrid tends to have pretty thin roots with a thinner velamen cover, so will prefer frequent watering and fast drying, so think about how you and your conditions can provide that.
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