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chrissy, I have had mine since last Dec and read a lot every day. Entire device looks like new.
Luckly, the original cases were leather before they switched to plastic, so my cover gets smoother and more flexible all the time. There are a lot of other good cases available you might consider.
But before that, as you are still under the warranty, give the support guys a call about this. I'll bet at the very least they will give you a new cover, and perhaps replace the Kindle too.
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