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Defect like this are always due to a defective screen. Not necessarily a broken screen, but it's only the screen that is defective. Are you sure that Bookeen send you a new device, not just the same device with a new screen? If they send you a new device, it that because they detect another problem that could not be repair. But the case of "defective display controler" is really rare as far as I known. If you look at an eInk screen without the housing you will see four little "bar" on two of the edge of the screen.
If the receive a hit of been bend they could break and led to problem like you seen. the eInk screen is really fragile...
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