I understand that tightly packing that moss is the solution.
I pot many of my non-Phal. seedlings in sphagnum moss, usually in 2" mesh-pots. You know how I love mesh-pots.
I do grow a lot of the Phal. Hitomi Watanabe 'No. 15' though, but it is a sub-compact plant. Those are purchased as tiny seedlings and might be potted up initially in sphagnum as well. I have never even considered growing mature orchids in sphagnum though. Since I have to water so often, regardless how tightly I packed that moss, I would be overwatering. Therefore, I use bark mixes, whether it is a fine, medium, or coarse media, for all my mature orchids.