Honestly doesn't sound good. Cutting the spike will help the plant, but you may want to just enjoy the blooms before the plant dies. Chalk it up to a learning experience.
BTW, it really cracks me up that everyone states "please help as I don't want to kill this plant." None of us want to kill them, obviously, we are here aren't we.

I blame Home Depot. It was potted in nasty, moldy sphag which retained far too much water. I had to wait until I got paid to give it a proper repotting with the necessary tools. I forgot to mention, though, it does have about 5 new roots growing, and a couple that seemed dead are making new green growths. So, I don't know...I suppose I'll see?

If it has new roots forming, it should do okay. I would leave the new spike.

Good luck. Whatever happens, you'll learn a lot from this incident.

I've brought many HD phals back from the dead. Cut the spikes. Uses way too much energy for a sick plant. cut off the dead roots with a sterile knife and use peroxide. Spag and bag it (see faq) and put it in some good light. I don't recommend cinamon. It will take months to recover but they are tough plants. A hospital phal that I took in in November is in spike

Clara

I can say assuredly I am glad I live in Georgia. It's nearly impossible to overwater a plant that's outside every day here. I pretty much agree with everyone here. I never much liked sphagging and bagging. I will place the orchid in a clay pot and cover any roots with sphagnum until there is enough growth to pot it normally. This is of course just a preference though, your mileage may vary.
Phals are surprisingly resilient. I had one that lost every leaf but somehow managed to maintain roots and is now sprouting new leaves next to the old, dead crown. Fear not. In the end, we're bound to lose a plant or two along the way. It's all part of the learning curve.
Good luck!

"I blame Home Depot. It was potted in nasty, moldy sphag which retained far too much water..." Home Depot merely retailed the plant which grew overseas in Thailand or some other South Asian wholesale operation. They potted the plant in the nasty, moldy sphag but a lot of fine orchids have grown in sphag and even the one currently under discussion at one time had seven leaves. Doesn't sound too shabby to me. Not trying to be argumentive just trying to focus or rather re-aim your anger S.T. The phal is picking up now because of the mid-summer light and heat but if nothing is done to maintain decent levels of light and heat through the winter it will backslide anew. Fatally this time since it will not have the reserves of size and vigor that it did this season.

H