Why does my iPod Touch zoom in/out erratically without me touching it?

I have an iPod Touch 4th generation 32gb. It is zooming in and out erratically without me touching it. This behavior is constant. As soon as I turn it on, it is zooming in and out.

I have attempted to fix this by checking the connections for the LCD and Digitizer inside the iPod. I even tried 2 other screens on it and both have the same erratic behavior.

I have done a full restore through iTunes and installed the latest software.

I even shorted the positive battery terminal with ground to see if that would reset it.

None of the above solutions work. Do you have any suggestions to fix this?