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The iPhone 4 was not in use for 2 month when I found it screen cracked. When I connected it the battery inflated and cause the back case as pop-out. Is someone has an explanation? what could have cause that? Is the battery is going to turn in fire?

Battery just aging, going bad pretty much. I don’t think the battery is going to explode by itself that easily. You would need to replace the battery and the rear back cover at the same time.