First, thank you so much for the video. It helps a ton.
I'm kinda torn on this one. It looks like an extreme case of ghost touching, which would mean a new digitizer would fix it. But I've never seen one on turbo like that. If it were me, I'd start by trying to restore it in iTunes. Its a 5 minute, free fix. If that works, great. Otherwise its almost certainly a bad digi/digi IC that is causing it to go nuts.