Problem with touchscreen after glued the frame

A new glass wont help as its just a piece of glass... Try removing the screen and clipping it back together onto the board, if that doesn't work then you need to change the screen.

Over stretching the flex cables at the top of the phone will damage the screen so its probably not the glue its the initial drop it had to cause the screen to lift out (or a swollen battery, pushing the screen out) or caused by pulling the screen to glue it.

Sounds like you damaged the screen when you glued it, id just replace the whole screen for a new one and not bother gluing it, they are so crazy cheap now its not even worth trying to repair.