IPod Touch Screen Error?

When I'm using my iPod Touch (5th generation), the screen occasionally flickers and freezes. There will be faint 'lines' in the background, the colours will be hazed over with greens and pinks, and the top half of the screen will display at the bottom, while the bottom (now top) will appear 'cracked', like the display was shunted a few pixels to the side. Nothing can be pressed while my iPod is in this state, but it tends to go into standby after a minute if I leave it alone. However, it's rather annoying and I'd like to know 1) What is causing it, and 2) If there's a possible fix.
I find that the orientation of my iPod, angle to the ground, and the way I'm holding it have an effect on how often it flickers and freezes. Sometimes, changing my grip on my iPod, as well as the angle/orientation, will 'fix' the freezing and I can proceed as usual.
I bought it within the last 8 months, I believe, but I'm reluctant to wipe all my data and use the warranty if there's a simple fix to this. If worst comes to worst, I can deal with using the warranty, but I'd like some thoughts. Thanks!
--EDIT--
Forgot to mention! This problem persists even if I completely shut off my iPod, and I did attempt to reset it to factory settings before, but to no avail.

If you restored to factory settings/new iPod and still have the problem that indicates a hardware problem.
Make an appointment at the Genius Bar of an Apple store..
Apple Retail Store - Genius Bar

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