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Yes, the cover does fold around flush with the back, although it is a bit stiff right now. My understanding is that it will break in a bit and be a little more flexible. I have no idea if this thing is leather or not... some days it smells like it, and some days it doesn't. My gut tells me that it is leather. I think the inside liner has a somewhat stronger odor and that is what I smell some days instead of the leather smell.
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