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The plant does not like the potting mix. It will root outside of it.
A medium grade of orchid bark should do the trick for a mix. Cut away all the dead or broken roots. If you put them in sphag they might stay too wet and rot the roots. Phals like to be moist, not wet. Don't let the mix dry out completely before you re-water. No direct sun either. Also since it's winter there, if it's dry like here in the winter, you might want to increase the humidity in the growing area. Good luck