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OP is out his $120. Too late to fix that, unless he can find the shady seller and the seller suddenly has an improbable attack of ethics.
OP should arrange with Amazon to return it to Amazon with an explanation. Worst case, Amazon gets it back and can sell it as a refurbished unit and OP has a clean conscience and has learned a hard lesson. Best case is Amazon decides to reward OP for being honest and gives him some credit towards Amazon merchandise, even towards a new legitimate Kindle.
It's up to him, but the right thing to do is clear.
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