7" Paneldue :(
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I have not seen that particular failure mode before but it does not look good! The issues we had were on initial test (we test all Paneldues +screens we sell directly), that said that certainly looks like an LCD failure, please contact your supplier.
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You could try gently waggling the thing that's a cross between a cable and a PCB that connects the TFT panel to the PCB it is attached to. I've heard of users getting displays to work again by doing that.
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I am sure you are talking about the larger one on the right.
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I wiggled, disconnected and reconnected and nothing helped. In fact it went from a few lines to completely white with tons of colorful lines. Bummer.
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The one you've indicated with the arrow is for the touch interface. The larger one on the right is for the LCD.