Kudos to Amazon for jumping out ahead of a potential Kindle cover PR disaster. Refunds for everyone!
Seems metal hooks in their leather non-lighted Kindle covers were making owners' ereaders act wonky, with occasional screen freezes and other maladies topping the list of complaints. Unfortunately, while it is indeed admirable they addressed this issue relatively quickly, their first generation covers, released last year, had a strangely similar issue that also involved metal hooks. Hmm.