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TL;DR

The author had two Kindles which both died with the symptom of lines showing on the screen, and ended up getting stuck in warranty hell with Amazon.

AFAIK this is the display controller going bad, which is a seems to be a pervasive and persistent problem with e-ink displays; I had a much-loved Hanlin V5 in 2009 that was very well taken care of which succumbed to this after only a few years of ownership.