Crack with red dot on my iPhone 3G??

A couple weeks ago a tiny hairline fracture crack started forming @ the bottom right of my iphone.. I did not drop it, I have no idea how it got there to be honest. I didn't take it in to Apple because I figured they would say it's my fault. Well, now I just noticed @ the bottom of the crack there is a little flickering red dot.
What is this????

As far as I know Apple is covering hairline stress cracks that are forming in the plastic backing. I've actually had 3 replacement white iPhone 3GS, and the only thing Apple has been checking has been the water sensors. All of my phones have been less than 2 months old, and in near mint condition, so they haven't had to question abuse, but if the phone was heavily scratched or there were dents I'm sure they would question abuse.
As far as the flickering red dot goes, I haven't heard of that before. All of the stress cracks I have seen have been minute and not even all the way through the backing. I say take it to Apple and show them. Just be honest and see what they think.

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