I fixed it, but it requires some linux/ubuntu know hows, so i'll state it here anyways for anybody who knows what they're doing.
we simply had a corrupt ROM in our phones. What I did was backup my system using Nandroid on my Ubuntu partition (has to be linux at the moment, can't do it on windows) and then I had two other partitions that I got from xda, system.img and boot.img. and then rebooted in fastboot mode (Turn phone on, wait 2-3 seconds, press space) and did:
"fastboot erase system" and repeated with all the other partitions to wipe the phone clean.
and then "fastboot flash boot boot.img" and "fastboot flash system system.img" and got the phone back to factory settings and that LED screen going black when i return from standby was fixed !
I even reinstalled all the apps I had on my phone before the format and the phone has been up for about a week without a single battery pop !
I got Nandroid-eve and the other tools from the thread over at xda.
Please only do this if you know what you're doing, and do it at your own risk.