It's totally dead.
The yellow right under that spot got boned. The switch is mangled and the wires are somewhat mangled. It wouldn't light up at all when I first used it.
After screwing around for a while I did it get it lighting up - yay! However, none of the buttons are actually registering, either on the PS2 or with the LPT adaptor.
I'm guessing I need a new PCB, new microswitch/wires, and (obviously) a new bottom panel. I realize this is entirely the shipping company's fault but I feel the sting pretty bad because the FP7 I also ordered has the start button issue that other people seem to be having lately.
Guess I have to wait a bit longer :|
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