Cannot Turn on Vita Unless It is Charging

I have had this issue for the past few months, and have tried just about everything.

To break down the problem my vita will remain stuck with a black screen and the ps button will glow continuously blue. Usually you can resolve a simple crash (that this Blue Light of Death implies) by implying restarting/rebooting the system. However, regardless of what you do in the safe mode menu, whether it be reboot, system update, factory reset, and/or any other option. The screen will flash, go black and the ps button will continue to glow blue.

The only way to get it to turn on again is to wait for the battery die (thus the blue light stops glowing), then to charge it (where it glows orange like it should normally). And then turn it on. And let it be known, ALL of its functionality is in tact! The touch screens work, the buttons work, EVERYTHING works! It is simply a nuisance because if i leave my vita on for long enough it goes into sleep mode and then can't turn on again. This also occurs when i try to shut down the system. It supposedly turns off, but the ps button will continue to glow blue.

I sent the system to sony because it was under warranty but they sent it back saying because of the scratches and slight water damage (which is irrelevant to the systems problem i believe), that they would not fix it (here they did not even attempt too). I have tried dissecting it to see if anything is amiss. Taking out the battery while its glowing blue and putting it back in again DOES help it turn on again, so i wonder if this problem has something to do with the battery, the cords that are connected to the battery, or the button panel in relation to the ps button?

I have tried explaining my problem on playstation forums and there seems to be no solution (or at least not one anyone is willing to talk about). And the issue i talk about it often dismissed and misunderstood as simply needing to be rebooted (which is false).

Lastly, although my system may have scratches and had the slightest of water leak inside (which AGAIN did not affect the system ((to my knowledge)) ), there are others on the play station forums who have encountered this problem within a week of their original purchase. Is it perhaps then a factory defect or otherwise? They also were confused as to a solution.

Is there anything I can do to resolve this issue?