Sounds like your lens assembly is damaged, it isn't able to twist the lens appropriately in order to fully close it or to focus in on the images you want. You will more than likely need to have the camera serviced. In most cases if it isn't under its warranty it will be a repair ranging close to $100, which is typically the cost of a new camera. Check your date of purchase as camera's come with at least a 1 year manufacturer's warranty, and hopefully you can get set straight.
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