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I have been warning about fungal rot all summer here in Florida and on this forum.
I would cut it off including the entire pseudobulb. It will not grow well and never flower so why take the risk of it spreading.
Spread of fungal rot is extremely fast. It can overtake the entire plant in less than a week. So that is the reason I take fast drastic action.
Prevention is the issue. Better air circulation is a big help. Watering at the base rather than on top will also help this species. The rot develops when water (rain in my case) gets in-between the leaves of the new growth and does not dry out fast enough.
Purpurata is also a species that likes its roots exposed. I no longer grow them in pots. They do excellent mounted.
Phystan 27 is a powerful fungicide. Be extremely careful with it. It is toxic to humans. It is systemic, it will entire your blood stream through your hands. It works best as a preventative in a commercial application. I do not recommend it for hobbyist. Weekly spraying during rainy season helps control the rot, but I have limited faith in its ability to stop rot once it starts. The rot grows faster than it is killed. Again cut it off.
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jerry
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