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The example in the photo is clear liquid damage. When water/liquid works its way into an LCD the different layers of the LCD separate a bit and you get that strange cloudy effect.

Humidity doesn't do that, unless you're talking about extended exposure to tropical rain forest levels of humidity, and even then I'd call it a stretch. The same goes for the liquid indicators, which were first called liquid submersion indicators.

Source - Worked at Apple for several years and have handled hundreds of liquid damaged phones. When you see clear symptoms like this there really isn't even a need to open it up or check the indicators.

This might be relevant... The first questionable claim I dealt with was a 3G that had a similar screen effect going on. The guy admitted he had dropped it in a bucket of oil while working on his car. The phone still worked fine but obviously looked strange. None of the indicators were tripped, they require direct contact with a waterbased liquid, which oil is not. At the time the wording for classifying liquid damage was that it was OOW if the indicators were tripped. My lead Genius left the decision up to me and we ended up replacing it at half cost for the guy since he had been honest with us.
 
I know its my fault that I posted a generic picture of a severally water damaged phone but for the last time: Please read my original post in its entirety, I HAVE AN IPHONE 5, THE PICTURE IS JUST A GENERIC PICTURE FROM THE INTERNET. Further more I have never spilled liquids or had the phone in or around liquids. The Apple store in Naperville IL is lying.
 
Here is a picture of my screen, sorry it took me so long to get one.

As you can see the bright lightning bolt on the left is what my entire screen used to look like(bright) and the rest of the screen is now dim compared to it.

It started in the bottom right of the screen, if you were to hold the phone vertically. It then spread the entire length of the screen and the entire bottom width. It basically made a backwards L, then it started spreading diagonally across the entire screen until all of it except for that little lightning bolt looking shape was dim.
screen.jpg
 
That looks like a blown / faulty display not water damage


Well the second apple store told me that none of the LCIs where activated but that it was still a water mark and refused service. I am now in the process of calling/emailing corporate.

The first store also bent the heck out of my sim card tray and scratched the bottom of my phone where the screen meets the metal chamfered surface. Then the second store added scratches to it as well. Talk about an effing headache right now.
 
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That sucks. Where do you live? I have never had problems like this with Apple stores. Years ago they looked in my wife's phone and said "It looks like it has been wet, but we'll replace it this time." I know with more devices out there they are less likely to be as lenient, but I've had 3 iPhone 5's replaced now; a hair under the screen, dust in the camera lens, and rotating home button. They didn't flinch on any of them. Sorry to hear you are having a hard time with the stores.
 
That sucks. Where do you live? I have never had problems like this with Apple stores. Years ago they looked in my wife's phone and said "It looks like it has been wet, but we'll replace it this time." I know with more devices out there they are less likely to be as lenient, but I've had 3 iPhone 5's replaced now; a hair under the screen, dust in the camera lens, and rotating home button. They didn't flinch on any of them. Sorry to hear you are having a hard time with the stores.

You know it sounds like everyone has had great service from apple but a few people have had nightmares. Its unfortunate because I am a big fan of the company and have spent quite a bit of money with them but at this very moment Im not too pleased with them.

OH, I live in the Chicagoland area.
 
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