Ouch! Ya that doesn't sound good... You could try taking it to a repair shop, but if they want to charge you to much then I would just save up for a new one. Sorry about that man.
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Could try talk to someone at an Apple store? Say that you don't know why it's happening, they might get you a new device. Even if they don't, I'm sure they might have some ideas as to how to resolve this.
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