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Yep, unfortunately that looks like a broken screen substrate. E-ink is pretty fragile so even if you take good care of it all it may take is the device getting slightly twisted sometime to crack it (or cause a stress point that may break later after a big temperature change or something). Not always easy to figure out the exact cause of it breaking, and often it's not due to "abuse" or dropping the device, just some unidentified bad luck/circumstances.
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