The Genius I visited this morning at the King of Prussia Apple Store was well aware of the issue. He said they received a notice a few days ago telling them to stop selling the current stocked touches until a new batch came in. The notice also mentioned to accept returns on any defective touches without question, which he did of course. He just wanted to look over my touch since I was the first person to bring a defective touch to him. He saw the problem right away even with the bright overhead lighting.