Screen issues

My wife's moto x pure edition did this the other day. Moto is sending a new one but they were convinced she had dropped it. We did a factory reset at Moto's urging, even though I told him he was crazy and it was clearly hardware, it didn't fix it. Weirdest thing I have ever seen. She plugged it in at night to charge it and then went to bed, woke up and this happened.

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