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I've worked retail for years, this is highly possible.

I have seen a connections center at Walmart have 3 straight phones that were supposed to be high dollar Galaxy phones turn out to be worthless dummy display phones. That was either theft in the store or theft at the supplier.

This one is either theft at the store or incompetence. Whoever took the return originally was either in on the scam or just lazy/shitty at his/her job.