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Sorry you got a lemon--both in terms of the device and the CS agent. Hopefully your next unit will be a keeper. I'm another one who's had several refurbished products over the years without a problem, and I wouldn't hesitate to take another as long as the warranty remained the same.
While it sounds more common in K2s, there have been a number of reports on other forums of K1s with the same sun fade issue. I think we're hearing about it more simply due to the high volume of K2s shipped in a two month span.
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