Chosen Solution

I got an iPhone 4 off ebay in a parts lot. After disconnecting and reconnecting the battery for no reason, the phone time shows December 31 1969. One of the Liquid indicators in the motherbord is RED. Could the incorrect date be a sign of water damage, even though I think the date was correct before unplugging and reconnecting the battery?

When the battery is unplugged the date and time is reset because there is no battery on the logic board to keep the date and time in memory. The date and time will retain if the battery is not too flat or unplugged, when the phone is connected to internet it will re-synchronize the date and time to current time if date and time is set to do it automatically in settings. The LD indicate can be a indication of possible liquid damage note that these stickers turn red even from just humidity.