Cases w/magnetic closures have been around for years with no issues.
Sounds like droid just got cranky and blew it self up.

 

Magnet sets off the dock mode and leaves your screen on.

This kills battery and you may have deleted items and such inadvertently because the phone was "on" in the holster.

I had limited success flipping the phone around so the screen side was closest to the magnet so the phone didnt go into dock mode but wound up just getting another holster with velcro to be safe.

If you dont have a dock - take a refrigerator magnet and wave it near the back and you'll see the screen go into dock mode.

 

i was questionable about getting a magnetic flap, but the velco was just so dang annoying. i have found that if i put my phone in with the screen facing the magnet it never goes into car mode. sometimes when i pull my phone out or put it back in, the magnet will make it go to my lock screen, but then it turns off after about 15 seconds.

 

another problem with velcro is noise - try discretely opening the case in a meeting - cant do it which is why I switched to this:

Amazon.com: Seidio Innocase Holster Case Combo for Motorola Droid (Black): Cell Phones & Service

 

I purchased a Verizon Leather Case with Magnet Closure specifically for the Droid. I have had no issues with the magnets causing docking mode to come on. This case has magnets on the ends of the flap instead of in the center and seems to work fine. I like it a lot. Its nice and slim and wears well. I do not have to carry the phone with the screen out to use this case. I would definitely recommend.

BigRedGonzo

 

agreed, velcro was terrible when trying to check my phone in class.

im also not a fan of seidio anymore after horrible products i received from them along with terrible customer service.

 

My case is magnetic, as long as I turn the screen off before I put it in I have no problems.

 

+1

 

If you get a case with a large enough magnet in the very center it'll trigger the Dock/Car Dock mode, but if you get a case with not so large dual magnets that reside at the extremities instead of the very center it won't trigger either dock mode.

I bought an HTC magnetic flap case for my Droid (I know, but it was the only one that didn't trigger the blasted dock mode) and have had no problems no matter which direction it's facing.