I actually have an update. After trying numerous things I found out the issue was the two little pads that rest on the bottom of the LCD (not the back)..
every time I tried to close the ipad mini they would create a fair amount of pressure on the LCD and mess with the touch sensor diodes. The result was crazy random movements.
So I just removed them and it worked. I may never replace them on an ipad mini again.
They serve little to no purpose and only infuriate me.