Your small Phalaenopsis in sphagnum moss has wrinkled, limp leaves and a few rotten roots. The garden center said "water more"—wrong advice. Moss holds water deep in the pot long after the surface feels dry.
Wrinkled Phalaenopsis leaves = root problem (usually rot from overwatering). Once wrinkled, leaves never plump back up—they'll yellow and fall. New leaves come from new roots.
The garden center meant well but didn't know orchids. Trust the roots, not the moss surface.
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