Hmmmm that definitely looks wrong and I suspect it may be the cause of your touchscreen problems.
So if you intend to keep the camera, I suggest you will be faced with fitting a new touch screen. As we have already seen, the 3.5" touch screens are relatively easy to procure. You need a decent quality panel with non reflective surface, as already fitted to the Exx series. It is a fiddly task but very viable as a repair job.
With the evidence of a fault that you already have, you can approach the seller and request a partial refund. As to how much you should ask for ..... I leave that to you.
Best Wishes and good luck in any negotiations you have with the seller. You can direct the seller to this thread as well.
Fraser