Psychopsis mendenhall part 2

Our psychopsis is doing well. It's planted in a 4" square plastic pot that is rather deep with a coconut chips medium. It stays wet for a long time. When we asked the vendor we bought it from about our growing conditions she said we may need to repot it so it would dry out fast enough. We are really reluctant to repot it because we killed the last psychopsis we had after repotting it. Instead we cut two long slits in all four sides of the pot to increase air flow and help it dry out faster. It seems to be working so far. It had two new growths when we bought it, and they are still with us. One is completely mature. I'm not even sure which one it was. The other is forming the pseudobulb right now and still doing well. I'm still very careful when I water not to get any water down in the cracks. The sheaths that cover the pseudobulbs on the new growths always seem to turn yellow and start rotting. We keep a vigilant eye out and pull them off when this starts to happen just incase it might spread. I don't know if this is really necessary or even a good idea, but it seems reasonable. We'll see how it goes. The grower told us to grow it exactly like any other oncidium. That is what we had tried to do before, but we had it growing in the wrong medium then. Hopefully this medium and setup will be alright until it outgrows the pot. Now that we've cut slits in the side some of the roots are visible and they look really good. I'm trying to keep them that way