What's wrong with the button on my phone?

I have a Samsung Rant. I had it since January, but I got a new phone in August, but that broke, and now I'm back to this one. Anyways, I noticed that sometimes when I press the 'ok' button, it will not go through. The water damage indicator is on, but I have never dropped this in water. It usually works, but sometimes it doesn't.

I'm really worried, considering that I don't have the money to send it away right now.

Will it get worse?
What happened?
 
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