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I Recently repaired an iPhone 7 screen (have been for many months now) however this time when I was replacing the screen, the home button stopped working. This is very unusual as it is saying that the home button and Touch ID is still able to work but it doesn’t. I had to use 2 screens to complete the task. The first one had a bend in one of the side clamps to clip the screen in to the body so it wouldn’t fit in the phone nicely. When I put the clamp back in place and clicked the screen down (just like any other screen) do you think that there was still pressure underneath that made the home button stop working?

Is there any visual damage to the button flex? It is very fragile, and even the smallest tear can cause the button to stop working. It could also be a problem with the cable which connects the button flex to the motherboard. Try connecting it again with your old screen, and see if it works again. If it does, then it is a faulty motherboard-home button flex.