There aren't many companies that will replace damaged components. If the screen gets cracked on almost anything that would be the normal response from the manufacturer.
If you post some pictures than other people may be able to tell whether it's screen damage, but if the screen does get even the slightest crack it will stop responding completely. That's the nature of eInk and nothing to do with Kobo.
If the screen is damaged then the only way the eReader has to show activity is it's LED - did that flash as normal when you powered it on?
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