AX-3 not binding to rx

[powercat]

To put it simply, I am an ignorant when it comes to electronics, so I am aking for some help. I have hit the search button for a few hours and still can't find an answer.
The stock servo on my Wraith got submerged. Wasn't to worried cause I had covered it with liquid tape, but I think it still got wet inside 'cause about 5 minutes later I had all sorts of glitches in the controls. I noticed that the connector on the red wire from the battery was darkened and the truck stuttered in forward and reverse and wouldn't steer.
I figured the servo was trash. Replaced it with a new HS7954 and I had nothing but red LEDs flashing and a constant "searching" beep. I tried binding the tx and rx 5 times. I had another battery that I was using, not the "damaged" one and I have replaced the batteries in the tx. All electronics are stock except the servo.
Would the esc cause this problem if it was damaged, electrically, when the servo was submerged?