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Recently, my Canon Powershot TX1's LCD flip panel shows a rounded moist like rounded borders at it its four edges, with rainbow like colors. What may be issue ? Does my LCD panel will die soon ? It is three years old now.

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That does sound like LCD damage. The times that I have seen rainbow patterns like you describe, the only fix was a new screen.

I'm not sure how much that would cost, but you could contact Canon and get a repair estimate.

Unless the cost was pretty low, I would lean towards using it as long as you can and saving for a new model.

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