Tthe roots are rotting, it has too much water. You could cut the spike but even if you don't you do need to repot. Take the plant out of the pot and wash off all of the media. You will need to use a sterile scissors. We would usually sterilize the pruners with a torch. cut back all of the soft and brown roots and leave only the healthy firm roots. You may have to cut back the tips of the roots to get to the healthy tissue
Before you repot you will need to get orchid bark. NZ bark is popular now but you can use redwood bark, sphagnum moss, or small decorative fir bark, but it won't last as long as the NZ bark. the media needs to be soaked overnight first in 10% bleach to make sure it is clean and get rid of any dirt and dust on it.
If you are using sphagnum peat moss. Just put enough to fill the pot or enough to get under the plant on the raft in a bucket and pour boiling water over it and let it soak until the water cools. Use gloves when handling sphagnum.
Get a new pot that the plant barely fits into. Make sure it has lots of holes on the bottom and the sides. Orchids like to be under planted. I actually prefer to put my orchids in baskets instead or mount them on a raft.
Positition the orchid in the pot so that it sits in the center about an inch from the top. If you are using bark and gently fill the bark around the roots and gently tap the pot on the table to settle the media. Fill the pot until just the top of the roots show and the orchid is held firm enough that it won't move or fall out. Do not tamp, it may break the roots. Orchid pots are usually shallow since you do not want a lot of water to be held in the media especially in plastic pot. Some people use a few irregular pieces of styrofoam pellets or pieces in the bottom of the pot to reduce the amount of media needed. You want to make sure water will flow around the styrofoam so it cannot be tight.
If you are using sphagnum moss, it is actually easier to plant. Wring out the spagnum moss until it is just barely damp, then fluff it out. Put a wad of the spagnum loosely under the crown of the plant to cover the hole in the middle add spagnum to pad the roots without smashing it, then when you have the roots wrapped in a ball of sphagnum, put it in the pot. Fill in as needed but not too tight, just enough that the plant is set and won't move too much or fall out. Do not cover the base of the plant or it will rot.
If you plant on a raft or basket you need just a small amount of the spagnum under the plant to keep it moist. You will tie the plant to the raft. I like to use something that will degrade and fall off eventually. Panty hose works pretty good.
Now this is important, after you repot do not water for about a week so the plant can recover and the cut ends have a chance to heal. If you are successful, the cut roots will branch out and new roots will form.
There are a couple of ways to water orchids. With phalaenopsis, the easiest for me is the color of the roots. When the roots are white they are healthy. When you water white roots they turn green. Don't water again until the roots are white or the pot is significantly lighter and the media feels almost dry. The rule of thumb is that if you think it needs water wait another day and then water. Phals do not like to completely dry out but they do not like soggy media either.
The best time to repot is after the plant has finished blooming but if the roots are rotting you have no choice. If you wait too long there won't be any roots left to save. BTW I have repotted orchids in bud and they still bloomed.
Orchids don't die, we kill them. Usually with too much water. Use a water soluble fertilizer every two weeks or fertilizer weakly weekly or 1/4 strength fertilizer solution every time you water. How often to water....as needed. It really depends on how fast the plant dries out. Indoors it will dry slower than outside in the wind. Rafts and baskets dry faster than plastic pots and sphagnum dries slower than bark. When you do water, make sure the plant drip dries in the sink and it does not stand in water.
This is video to show how to repot an Phalaenopsis with rotten roots. I am used to soaking the media first and I do not mix sphagnum with bark. But people use the media which works the best for them.
https://www.youtube.com/watch?v=wbXQIsNKysk