The other possibility is that it's actually a battery failure and the battery has swollen, which is squashing the LCD and causing the changes in backlight.
Were you planning to take the back off to check for water? If so maybe you can see if the battery looks swollen. Either way this is looking like a hardware issue though in which case I'll make sure we get it replaced.
Espruino is a JavaScript interpreter for low-power Microcontrollers. This site is both a support community for Espruino and a place to share what you are working on.
The other possibility is that it's actually a battery failure and the battery has swollen, which is squashing the LCD and causing the changes in backlight.
Were you planning to take the back off to check for water? If so maybe you can see if the battery looks swollen. Either way this is looking like a hardware issue though in which case I'll make sure we get it replaced.