Chosen Solution

So I just got my iPhone 5 that I bought from eBay. When I opened it up, I saw some stains on the display backplate (as you can see in the picture). Is that a sign of water damage? All the indicators havent turned red or something. It may also be important to say that this one is a replacement device from Apple.

I would inspect the connectors for any white crusty residue. That’s a better indication of liquid damage. Odds are your phone was liquid damaged and refurbished. That liquid damage indicator on the back of the screen can easily be replaced by swapping that metal plate.