It might be a faulty board for the bottom buttons, or maybe your UMD sensor is malfunctioning. Either way, I doubt it's something you can fix through software or a quick fix, so it's probably best to send it in to Sony.
Granpire
Before taking that step, I think resetting the PSP system entirely (not the memory stick just the PSP) to see if that fixes it. And before even doing that, contacting Sony via e-mail might be good to see if they can give you any help..
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