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No, not necessarily, but it can cause a minor issue. iPhones use a Lithium-Ion battery for its power, using while it's charging won't necessarily ruin the battery, but if you're using the phone while the battery is in the charging process, it can cause the phone to think it has more power than it actually has.
The battery is usually the first thing that gets damaged when water gets into your phone. As soon as your phone gets wet, put it in a bag full of rice for at least 42 hours. This will help draw out the moisture from your device. If the phone does not turn on after that, you can try a simple battery replacement.he battery is usually the first thing that gets damaged when water gets into your phone. As soon as your phone gets wet, put it in a bag full of rice for at least 42 hours. This will help draw out the moisture from your device. If the phone does not turn on after that, you can try a simple battery replacement.