Yes there are USB charging IC's and there is a signature failure on those devices that it "fake charges". This can be fixed with a Microsoldering technician with the proper parts.
I would turn the phone off immediately. While you have it on, the power going through the phone is encouraging corrosion on the elements inside. The only chance you have is to take it to a professional that does water damage repair. Now there are a lot of people out there who claim to do water damage repair, make sure whoever you take it to removes the emi shields and does a thorough cleaning. The longer it dries and more time that goes between now and when you get it diagnosed, the less chance of recovery.