There are two possible reasons for this happening.
# The hardware is physically damaged. The USB port that sticks out could have gotten partially disconnected from the PCB inside. So it's losing connection under its own weight. The only way to make sure is to open it up and check if the USB port part is still connected properly to the PCB inside,
# The controller chip inside on the PCB is broken. This is harder to diagnose without special measuring and testing. If it is broken, a donor USB stick of the same model could be used to swap parts. This would require de-soldering and soldering of usually pretty small parts.
What you can try is connect it to a different USB port in your PC or a different computer entirely to see if the behavior is the same.