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Maybe something inside broke as well. Have you considered buying a dead 505 from someone and switching the screen? I don't know how easy that would be but you might be able to find one somewhere for very cheap with an intact screen.
I suggest emailing Sony first about the situation. Worst case scenario, they test the reader, find it broken inside and un-fixable, and they just trash it and you don't have to pay the $90. Best case, they replace the screen and make sure it works.
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