Apple’s devices (and many of the competitions) have liquid contact indicators (LCIs) in the headphone jack, which change color when they get wet, and are used to deny your warranty requests because you dropped your iPod into a puddle. Unfortunately, as many people who got caught by an errant droplet can confirm, sometimes the setting off of a single indicator isn’t directly related the problem that you’re having. According to BGR, Apple is now overhauling their iPod procedure, and having an activated LCI is no longer enough for them to deny you outright, they now have to check for other evidence of water damage.
Sane policy from a big company? Impossible!