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Kindle uses Bing Translate service for phrase/sentence translation. It is working fine for me (checked on 2 Kindles).
There might be some sort of 'bad internet weather' where you are located, but short of traveling to some other location to try again, one may hope it clears up without you having to do anything (because it's not clear what you can do).
The Kindle apps also have Translate feature. You could at least see if those are working for a point of comparison. If it does, then at least you have a workaround until it's working again on your Oasis.
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