Contact the Consumer Product Safety Commission, like I did. You can file a complaint online and I think Microsoft has 60 days to respond to the complaint. Here's the website:
https://www.saferproducts.gov/CPSRMSPublic/Incidents/ReportIncident.aspx



Same issue here, though it can still be opened and hasn't started smoking yet, but I'd rather not risk any overheating injuries, thank you very much!
It was sent by the retailer we bought it from to the Microsoft Store in Toronto on May 12th, with the request of honoring Quebec's legal warranty, i.e.


Microsoft refused the retailer's request, asked to deal directly with the consumer, then offered us a replacement for $600 USD (bought it for $2300 CA). We provided pictures, and consumer support tried to escalate it, to no avail.
They then basically told us to go back to the retailer, claiming that the legal warranty does not apply (although legally, goods coming from outside Quebec or Canada are also included in our "Consumer Protection Act").
So, next step is bringing the computer back to the retailer (I'm not naming them, because we've had great services and collaboration on this issue from them so far... So I'm waiting for further developments, and might even be giving them a huge thumbs up if
they keep it up!) with the information we've managed to gather on the issue, and hopefully let them take it up with Microsoft themselves (given they sold us defective goods that Microsoft apparently knows about, but is refusing to take any responsibility for).
Either way, we're fighting back! And I'll let you know how it goes.
Note: We bought that unit on the last few days of December 2015, I've used it leisurely mainly at home for a little less than 3 years and 5 months... If Microsoft is telling me that this is what's considered a "reasonable length of time" for a $2300 computer,
I for one will do anything I can to stay away from their products from that point on, because that is plain ridiculous!