Name: Big Bill Livonia Michigan (Zone 6a) If you need to relax, grow plants!!
The good news is that you caught this problem early on. It takes time and a good deal of neglect to kill a Phalaenopsis. They respond very well to repotting and within 4-6 weeks they will sprout new roots.
Fresh growing media is very important as mentioned. The problem lies with growing the plant in a pot inside of another pot! And you have already learned that lesson. Congratulations for that.
Your plant should recover easily. Good luck!
Orchid lecturer, teacher and judge. Retired Wildlife Biologist. Supervisor of a nature preserve up until I retired.