HDD is no where near it and its a low strength magnet similar to ones found in many laptops. and just for safe measure i did double check that the hard drive and other components weren't near where was going.
ok take of that cable if im not mistaking its for the buttons under the mouse pad. IF someone already took the computer apart removing the cable and re-attaching it without being careful the metal contacts can unglue and touch each other. Try taking it off from the mobo and restart the computer and see if problem persists.
already did that. i suspect the same thing as you. some of the screw's were loose. the lid magnet is in place and it now operates correctly. more then likely a wire was pinched which is at this point the only explanation.