lol! I had the EXACT same problem and EXACT same photos, that I started in a thread around here somewhere. I noticed my issue within the first week and returned it.
It was funny how the Apple "genus" (special branch of humanity) showed me his and smugly stated" See, even mine has it" (As if I somehow would temper my complaint once I realized it was a commonplace issue.... he don't know me very well, now do he?)
To which I replied " How long have you had it?"
He said " A little over a month"
To which I retorted "I've had this less than a week!"
Then he admitted " Well, this has also been handled by a few dozen people"
And I said "And you're ok with that damage?"
and finally, with a look of indignant shame "Well it's only mine at work. We can refund you for everything, if you like (meaning the ipad too)"
I returned my cover. Then I went to best buy (across the street) and got some little leather, folio crap cover, that at least covered the back and the edges - for half the price of the "It smarts cover" (It "smarts" to pay this much and it "smarts" when it damages your new 900 dollar ipad"
Good luck with your resolution.
EDIT: My thread:
https://forums.macrumors.com/threads/1127522/
EDIT 2: My cover (From Best Buy, it's ok...not great)
http://www.bestbuy.com/site/Griffin...lack/2374327.p?id=1218323066503&skuId=2374327