I was in my local Staples, went to look at the Kindles, and they have/had the Paperwhite on clearance for $35.50.
I called back, to make sure the price was correct, they said it was, so I purchased one (they said it was the last one in stock.)
I assume it is the latest generation, as it says "Now with a 300PPI display" on the box.
Their website doesn't say anything about a clearance, and neither does their Weekly Flyer.
The sales associate didn't have much additional information; usually things on clearance mean a new model is coming out and that other stores would probably also have them on clearance (she offered to call around, I declined).
It had an original price of $119.00.
I took a picture of the display if anyone is interested.