There is no service manual for this scope other than "replace board ...". Unfortunately HP never released any schematics.
I have one of these but I've never opened it up so this is just a guess. Those things are just rotary encoders, so it could be a bad encoder, bad connection or, worst case, something on the main board. You could open it up and swap the Ch1 and Ch2 vertical encoders and see if the problem follows.
I think the odds are good for a bad encoder but you won't know until you open it up.