Wada had a magnetic resonance angiography test done on Tuesday on his left elbow, which showed the issue, before the Orioles beat the Blue Jays, 2-1, in the series opener.
"There's some problems with the ligament, the MRA showed," Showalter said. "We're contemplating, along with him, of what the next direction to take. It did show some damage in there with the ligament that didn't show up in the first physical we took when he was signed."
Showalter said Wada's people and the Orioles have to go over everything and make decisions about where to go from here. The left-hander signed a two-year deal before the season, but hasn't pitched yet.