Masdevallia infracta dropping leaves....please help

[missmorbus]

I had not repotted the plant when I received it, and I was a little curious if there was a problem with the roots, but I was too nervous to yank it out of its pot while it was apparently in the process of spontaneous self-combustion. I probably should have checked the roots and repotted it when this first started, I mean what's the worst that could happen.....it could lose all its leaves and die. So, I checked the roots and repotted it today. The roots looked pretty good to me. There was a small clump of yucky black looking ones, which I removed, but the rest looked pretty healthy to me. It was potted in sphagnum, and the sphagnum looked really yucky, so it must have been in need of a change. I actually thought it was potted in some other kind of moss from the way it looked on the surface. Also, there was also a ton of moss packed in there. There is no way it was drying out as fast as I thought it was. My guess is that it was staying way too damp around the roots. I repotted in sphag. because that's what I had on hand for an emergency transplant, and because I know that if I plant it in bark I will let it get way too dry between waterings. I didn't put nearly as much moss in it though. I also moved the plant to a much shadier spot. I don't think sun was the problem because this started while it was really overcast and dark outside, but I had noticed since the sun was back out today that it looked like it was getting way too much sun. Hopefully this will save it. It's lost two more leaves since my original post, but the leaf loss seems to have slowed down a little bit. Of course, now its down to only 2 leaves and one developing leaf (the developing leaf was there when I received it).

If this doesn't help and it loses all it's leaves, can it still come back from that? I would hate to throw in the towel if it loses all its leaves, but there's still a chance that it could come back from the roots.

Ross, I only water with distilled water, and I've only fertilized it once because I read they are sensitive to fertilizer (read that after I fertilized it). The one time I fertilized, I used a weak solution mixed at 1/4 strength, but that was a couple of weeks ago so I don't think that had anything to do with it.

Thanks for all your help with this. Hopefully it will pull through. Let me know if you have any other suggestions.