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Certified Like New Device with Cracked Internal Screen

I have to say that I have been nothing but dissappointed since becoming a Verizon customer a few years ago.   I am on my 4th HTC Thunderbolt due to over heating, cycling, battery issues etc etc etc.  The last "certified like new" device I recevied was in Oct 2012 and when I initially opened the phone I thought the screen (glass portion) looked different and noticed what I thought was a very small amount of dust under the top piece of glass.  I figured that the original screen may had been replaced and went on to power up the phone to be sure there weren't any other issues.  Everything appeared to be fine and the "dust" wasn't visable while the phone was on.  After being on the 3-4th phone and still under a contract period the "dust" wasn't enough to bother me and I didn't feel the need to return it for another.  4 months later I have found out that what I thought was dust  appears to the result of an internal crack.  The phone was fine for the first several months and just recently I began to see light shining through a hairline crack and the screen looks like it has a crease in some areas.... all that extend up from the original "dust"  at this point more "dust" has appeared and the crack/crease has spread the entire length of the phone - I have had several times where the phone seemed very hot and would quit working only to find when it finally powered back up the hairline crack was larger and there were small areas that the screen was completely black. 

I took the phone in today to discuss the issue and was told it was an internal crack and that I was out of luck - my only option was to sign a new contract, (which would also result in me losing unlimited data) pay full price for a phone or pay $100 to file a claim - When I explained everything above and told them I have only had the phone for a few months I of course questioned why it was no longer covered under warranty  I was told that I would have to prove that I didn't do something to the phone to cause the internal crack and that they only send out certified like new devices.  I have to say this is the worst customer experince I have ever received and I am insulted that the staff who was assisting me basically told me I was lying and I had damaged the phone!  There is no damage to the outside of the phone, top glass is like new , not a single  scratch, nick or chip anywhere on the phone, AND the phone has never been dropped.  It sits on my desk on a docking station then in my car until I get home.

Can someone please explain to me how this would not be covered under warranty..... sorry but obviously your "like new" device WAS not like new - it only looked like new.

~At this point Verizon doesn't seemed to concerned if they loose another customer they still have plenty more to screw over!