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To me that looks like a defective Kobo, the first sign was the fact that you said it looked like it was open. Did you have to setup the time and date when you first powered on the Kobo?
You can exchange the defective Kobo at any Indigo/Chapters location simply bring the Box,Cord, and ask for an exchange for a defective Kobo just tell them the problems. If we don't have your particular color in stock you will have to choose a different color.
The books are saved to your account so you won't lose the books you'll just have to resync the books onto the new Kobo, you will lose the page bookmarks but at this point I think you'd be happy to get a device that doesn't act up.
Good luck and keep us informed
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