Could be both, could be either. Let's hope it is a software issue.
One obvious solution is... well... change it back! Then do a power-cycle. (feel free to remove the battery for a few minutes before powering on)
If it went back to being "upright" when the keyboard is closed, then it is a software issue.
You also have other "sensory"-related apps to activate to better diagnose the failure. For instance:
- you can activate Keyboard Sliding sounds
Start--> Settings--> Personal--> Keyboard Sliding
Choose a sound (any sound), test it (make sure the phone sounds off with it), then activate it.
Then open the keyboard and close it to activate the sounds. If it sounds off, then it's a software problem.
Software problems are easier to fix:
1) backup your hard-earned data (contacts, calls, sms, mms, etc.)
2) then do a factory/hard-reset
3) Once control is given to you, restore the hard-earned data.
Soft-reset the device. Then enjoy.
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