I recently purchased the official $40 case from amazon. It looks nice, feels nice, puts my kindle to sleep and wakes it up again, just as promised. The only drawback is that the magnet is too weak to keep the cover closed.
I contacted Amazon Customer Service and will receive a replacement, so there is a possibility that it's only my case that has this flaw. But I second Blossoms suggestion - get a case outside the oficial case. My feeling is that the official case is not something you could put in a bag or rucksack or something and rely on it keeping your kindle safe and sound
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