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My workaround is to put the device to sleep manually using the switch on the back, wait a sec for it to actually sleep, and then close the cover. This is not how it was intended to work (the kindle PW2 never had this issue with its cover) but it gets the job done till (if) this get fixed with a firmware update.
For me the cover's job is to protect the device first and everything else second so this isn't so bad. While it is slightly annoying it does not diminish the reading experience which on the KA1 is quite awesome.
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