rectangle pink hue on iPhone 5s

So, I noticed that my iPhone 5s gold 16gb has rectangle pink hue on the screen. It is distracting especially because the border outside of the rectangle hue is white. It definitely is not normal. I saw a discussion about that on apple forums and people suggesting that it is caused by lcd defect and I should take it to Apple to most likely they will it replace for free if it is still under warranty.

The phone is less than a year old and the warranty is still valid till July 2015.

So I sent my husband to the genius bar. The tech guy checked the water damage indicators on the bottom and side of the phone and it was all clear. But then he said that on iPhone 5s's there is another way to check the water damage which is by opening it.

Then he took the iPhone inside opened it up and then came out saying that he saw water around the area of the camera??

My husband asked for a second opinion and another tech said he definitely didn't see water but he thought he saw some moisture between the layers of inside of the phone and the screen. Then my husband asked him to take picture of the opened phone so he could see what they were talking about, and the tech went inside and took picture and came out with the picture. The picture showed it was all dry, and the tech indicated, it was dry but he THOUGHT there was some moisture.

this is very frustrating since the phone never came close to water and the techs just plainly refused to fix the problem because they suspected the phone had liquid damage even though there was no proof that there was liquid.

My husband asked to talk to the manager and the manager told my husband that he will need to leave the phone for more thorough diagnosis, and for my husband to pick it up on Monday, now is Saturday, Otherwise they would put on the record that my iphone has water damage and put it as out of warranty.

I am super disappointed and worried what would happen to my phone now.

Why are they being so hard on customers?

Let me know what you guys think of this.