Ledge, the liquid indicators really don't mean much. There are to many individuals who have are somewhat dishonest by replacing those with "aftermarket" indicators. I would most certainly treat it as water damaged. You can not go wrong by doing so. Disassemble your phone using these guides. Once it is disassembled, you do need to clean it properly. ON this model you must remove the EMI shields for proper cleaning. You will need high grade isopropyl alcohol and a soft brush. Use this guide to see how to clean it. Even so it was written for a 3G all the points are still pertinent to your phone. Of course, if you have access to an ultrasonic cleaner, take advantage of it. While you are cleaning it, check for any broken, missing or burned looking components. When it is properly cleaned, replace the battery. All these steps are to avoid delayed failure caused by corrosion. Once all this is done, reassemble your phone and reevaluate.