The moisture indicated liquid contact. I woiuld try the iPiod as specified here:
The when dry try:
- Also try DFU mode after try recovery mode
- If not successful that usually indicates a hardware problem and an appointment at the Genius Bar of an Apple store is in order.
Note that liquid damage is not covered by the warranty. To check see:
Maybe time to either go to an Apple store or sent it to Apple. For how to send it to Apple see:
Does the iPod liquid indicator show contact with liquid as described in