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The glass substrate of the screen (the bit that has all the controlling electronics on it) is broken.
Compare the discontinuities on the two screens and you'll see they match. It got hit in the top right portion of the screen and the glass has shattered around that point, in long curves the way glass does when hit at a point.
It is not more broken in the second image than it is in the first image.
The only way to fix it would be to replace the screen. That's a tricky, delicate job, and would cost more than the PRS-505 is worth, even if you could find someone with replacement screens.
You'll need to buy a new ebook reader. This one is dead.
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