Like Will said, NEVER let it sit in water! That is a bad idea, very bad.
1. Media is too coarse. The individual pieces are too big. Big pieces make it dry out too quickly. By letting it stand in water, that will keep it way too moist.
2. The symptoms that I saw is probable root loss due to either overwatering or a soggy mix.
3. Repot should have been accomplished by using chunks of media down in the quarter inch size. A few larger pieces would have been fine. This plant has media pieces one inch and larger in size.
4. Phalaenopsis respond very well to repots but in appropriate sized media. With smaller media pieces you could water that plant once every four days or so. New roots would typically sprout within 4-6 weeks. 8 weeks tops!
5. This plant will continue to do downhill with the incorrect sized media AND standing in water.
