Why is the touch pointer stuck after a screen replacement?

The screen got replaced after it was cracked but now the touch response is quite bad. After turning developer mode and pointer location on I can see that the first 2 touches work but after that the pointer locks on some point in the middle of the screen without letting go - like an invisible finger is still on the screen. Turning the screen off and on releases it.

I have noticed that when the phone is charging the touch response is fine.

Is there a fix for this? Thanks in advance