I find this very, very odd that you and I both got this problem on our iPad mini 2's on the same day. I was still running iOS 10.0.1 at the time, I factory reset and updated to 10.1.1 but it didn't make a difference.
It comes on in the same manner, the bands run up and down (left and right in landscape mode) where any bright areas are on the screen. I thought that the bands were rotating too (staying horizontal at all times, but not so).
This happened to me right after I plugged in an Apple Lightening to HDMI connector to view my iPad on the TV (which I did successfully the night before). Could the connector, cord or TV possible have sent a surge into the iPad to cause damage to the hardware?
As with @Hoangmanhlinh it is intermittent and I can get it to go back to normal by pressing the lock button and then waking it up again. Sometimes it is still there, but most of the time it is gone; but it will spontaneously come back after a bit of time.
But still, why did this happen on the same weekend for the same iPad model.
Mines a 128 GB cellular model, so I don't want to see this die on me. I really don't want to have to get a new one, that money is to replace my iPhone 3GS! sigh. 😟