Yes, the front flap on the official Sony cases folds completely back with no problem at all. They're pretty flexible over the spine, especially the T1/T2 case since the reader snaps into it.
Even with my 650 where the reader has the divots on the ends that the plastic strip on the case goes into, that cover will fold all the way around too. It's a little stiff at first but loosens up with use.
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