Phone [Q] Screen colors messed up (Ribbon?)

Hello Desire Z community.

I have met following issues with a Desire Z, and with a little bit of searching it appears that the ribbon might be broken inside the phone (The pictures are enormous):
 

However, after opening the phone and taking a look at the ribbon, it *seems* to be fine. There is no clear tearing in the ribbon, and it seems like it is OK overall. Can someone of you confirm whether this issue is caused by the ribbon, or by some other variable (screen, bad connectors maybe)?
The screen is distorted, and opening the keyboard "changes" the distortion. Also touching the ribbon while keeping the keyboard half-opened modifies the distortion.

This is my dad's phone, and he rather uses the phone in this condition than his Galaxy S4

Video of the issue:

(Yes, I recorded it without too much effort, don't hate me :P)
General guide for Archos G9 tablets
Devices: Samsung Galaxy S2, Archos G9 101, Ouya, Asus MeMo Pad Smart 10"