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Have you tried doing a pin-hole reset? This can force a restart if the device is not responding to the power slider.
The LED doesn't normally come on when charging, at least not on my Glo.
The issue with some sleep covers is they can touch the screen when closing, which can result in the battery being drained even though the device appears to be in sleep mode. The official Kobo sleepcovers don't have the problem as far as I have heard though.
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