That's how they're often grown. The pseudobulbs are normally just below or at the medium surface.
This is a terrestrial orchid, not an epiphyte. Uprooting terrestrials during the growing season can harm them badly. They may not make new roots this late in the season.
Leaves and new growth are produced once a year, in the spring. By fall leaves often look ratty. Then there may be damage of the large, soft leaves with shipping. I think the leaves on yours are OK. New ones will look much nicer early in the season.
I would put it in bright shade as it is and keep moist. Continue fertilizing until the newest growth is mature. Don't keep it dry in winter, but don't keep it always wet, either. Resume fertilizing when you see new growth in Spring.
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