I have a slightly smaller but similar blob on my Kindle 3. It developed after six months of usage. I think it might have resulted from unknowingly applying pressure on the screen. My reader never has been in a protective cover, though I always manipulate it with care. It is somewhat annoying but it is so small that I am now used to it, it doesn't bother me anymore when reading. I have had the blob for six months and it has not grown or changed shape. I guess it has stabilized. Wear and tear maybe.
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