It looks like it rotted. I think it might be a goner.
Phalaenopsis orchids (which are epiphytic) were never meant to be growing upright in a pot, but rather with the leaves downward and the spike sticking out horizontally. They are not easy to display (and sell) that way, which is why you will find them 'potted up' with a stake to hold the spike upright. This often does cause rotting when the plant is overwatered.
