Try:
- Reset the iOS device. Nothing will be lost
Reset iOS device: Hold down the On/Off button and the Home button at the same time for at
least ten seconds, until the Apple logo appears.
- Reset all settings
Go to Settings > General > Reset and tap Reset All Settings.
All your preferences and settings are reset. Information (such as contacts and calendars) and media (such as songs and videos) aren’t affected.
- Restore from backup. See:
Restore your device from an iCloud or iTunes backup - Apple Support
- Restore to factory settings/new iOS device.
If still problem, make an appointment at the Genius Bar of an Apple store since it appears you have a hardware problem.
Apple Retail Store - Genius Bar
Unless you purchased the optional AppleCare+ extended warranty, the warranty does not cover damaged cause by the operator like form dropping it.
Apple will exchange your iPod for a refurbished one for this price. They do not fix yours.
Service Answer Center - iPod
With AppleCare+ the exchange cost is $29