Ah, Sphagnum! Or as we call it affectionally "The Orchid-undertaker's favorite tool".
Even a Neofinetia falcata picked up at the SEPOS had rotten roots under the Sphagnum....
There were good roots above the Sphag or I wouldn't have bought it. I repotted ASAP.
That stuff keeps Orchids moist in transit and many people like it for that same reason - less to water. But, if one waters plenty, the roots go south quickly.