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this also happened to me, the screen from the inside is either cracked or had blown out (stopped woking because of maybe over heat or some other bizzare reason, the only way to know for sure what happened is to obviously open the phone)
you have to buy a 60 to 70 dollar (US dollar) lg LCD screen, and tool kit to open the phone, take out the lcd, and put the new one it
if the old lcd is fine, then return the lcd that u bought and call warranty.
a new lg vu cost around 100 to 120
try resetting it. I had the same problem. Apparently (I've been told) you need to recalibrate the touch screen on a regular basis. Eventually the whole screen will stop working, so do it now before it is too late.