I was one of those who ran out and bought the Squier when Fender confirmed the discontinuation. I wanted to thank hmxHenry for the update since I was not opening it on the slim chance that a V2 was coming out. While the news isn't good, I appreciate the update as I think most consumers do. What this does to existing stock and non-US customers I don't know, but hopefully something can be figured out.
I've opened my Squier now and while I'm a bit worried about the reports, I plan to read up on the other threads and see if any problems I encounter can be solved. An official troubleshooting document from Fender or HMX would be great and might stem some of the returns.
I don't think we will ever know what really happened and when, but we have enough information to make educated choices for ourselves. HMX coming out and supporting pro mode still is one of the big items that should put a lot of buyers at ease.