Root Issue spreading to crown

[Julissa]

The story behind this orchid can be found here:

Can a Phal orchid Burn Out?

About a week ago, the three largest roots of the orchid became loose at the base of the plant with a brown edge closes to the crown.

I was advised not to do anything and just repot it. I was waiting for the roots to need water again before I went ahead an repot it. Today seemed like a good day to repot since the moss was dry along with the roots looking silvery.

When I took the orchid out of the pot I noticed that there is something wrong with it.

What I feared might happen, is happening. I'm not sure if its bacteria or fungus but something is definitely wrong with it. The area has a gray/white tint to it and it is also soft/mushy. Below are pictures of the area.

Last Week:






Today:







Please help me figure out what is going on and how to cure it.