I'd say that's just how most Epidendrums look. They are scraggly little things, in my experience. Although I've never had one in a terrarium, all mine have been in the greenhouse.
I dont usually like to introduce cuttings that small either. A larger piece will more often than not establish more quickly. That orchid will fill out nicely given a chance and make a cool mat on the bacground. I like SCHLECHTERIANUM more for a cool mat forming species though
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