I just tried out my friend's PRS-350 micro-USB cable for my PRS-650 and it didn't have the problem. Slips in perfectly aligned and it didn't have the wiggle problem. So, it had to be the cable not the micro-USB slot itself.
On another note, the inside upper right part, especially the shiny silver area of the PRS-650's micro-USB slot has a deep line scratch. Does anyone here have it on their PRS-650? If not, I think my faulty micro-USB cable's barb caused it.
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