Hi Jenny
If the issue is not covered under warranty or any other Apple policy - be sure to ask, with reference to potential battery swelling issues - then your Apple Watch may instead be eligible for replacement via chargeable, out-of-warranty service or via AppleCare+, if previously purchased.
Contact Apple Support (mail-in service may be available, if required), make a Genius Bar reservation or visit an Apple Authorised Service Provider to arrange for your Apple Watch to be inspected and to establish your available options:
Apple Watch Informationscenter för service – Apple-support
I'm afraid that no-one here can tell you what Apple will decide in your specific case. You are not talking to Apple here - this is a user-based technical support community.
In the meantime, note that Apple advises that you should not continue using a damaged Apple Watch.