IPhone 5 the screen glass popped. Refused to be repaired for free in warranty.

Hello everyone,
I have iPhone 5 with 3 months warranty left. It is purchased from local mobile operator in Bulgaria - Mtel. 3 weeks ago I saw a screen glass issue. From one side, the glass Is little popped and when I push in that area the touch screen floating. The glass is popped about 2 millimeters. The iPhone works properly, the touch screen to, display is in perfect condition. I gave the iPhone for warranty service, and after a week they avoided the warranty, because “the phone has signs of impact”.
Actually the phone has dropped 2 times for 1.7 years and that was happened couple of months after buying it. The screen problem appear 1.5 years later.If the screen problem is because the battery is swollen, can they(service) again refuse to repair my iphone with warranty?
PS: I am sorry for my bad English, this is my first time to communicate in English spoken forum.

Thank you for your answers. My serial number is not eligible for “iPhone 5 battery replacement program ” but is eligible for “iPhone 5 Sleep/Wake button replacement program”. I don’t know how much this is matters for my case. My screen glass is in good condition without scratches.
I found in web for similar issues and exactly the same with pictures, but here the phone is one day old and is 5s.
And like here before I saw the display is popped I recognize same “there is a click or pop coming from under the screen when I am using it.”
I will search for second opinion in local apple retail store. Can be a problem this: in service of local wireless carrier partner Mtel will put on the back of the warranty card “warranty void” (or something like this )?

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IPhone 5 the screen glass popped. Refused to be repaired for free in warranty.

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