This is one of the main problems with home espresso machines. They all literally only last a few years, five at best i've heard. The problem with yours is probably a blown seal, much like an o-ring, some where in the wand connection. If you can dis-assemble the device, voiding any remaining warranty by the way, you can try to just clean the o-ring area and it may become usable for another year at the most. Contact the vendor if possible for an OEM replacement o-ring so that it matches in size and thickness correctly.