Phone [Q] LCD or motherboard failure?

My OG Droid has recently started acting up. During boot, Motorola logo is visible, but disfigured (instead of being centered, half of the logo is on the left and half on the right side of the screen). Then the screen alternates between black and different kinds of noise like on the picture below.

When the boot is complete, there is a notification sound accompanied with notification LED flashing red. The phone remains responsive to touch inputs and volume button presses, but it reboots spontaneously shortly after.

My question is: Can the phone somehow know its display is malfunctioning and tries to notify the user with LEDs and sounds or is something wrong with my motherboard?