I got this magic mini from ebay and it apperas to be open box new.  I charged the battery and powered on the drone.  15 seconds into it, there was a smell of burning. I looked over and there was smoke coming out from the Drone where the battery component is. I quickly opened the battery component and pulled the battery out.

I then tried again putting the battery back in and powered on. This time no smoke.  However, I am unable to complete the pairing and upgrade.  It gets up to 89% and then says update installation failed and "Mavic Mini system recovery failed. Restart aircraft or contact DJI support". picture attached

It's almost hot to touch too. The light keeps blinking from green to red and I hear clicking during the upgrade process. Tried twice and it fails at 89%.
2nd picture: I put in a new battery and tried again. This time it went to a message about overheating.

Update: I have tried updating via the DJI Assistant 2 on my windows computer. It recognizes the drone but the Firmware REFRESH and UPGRADE all fail at some point.

Has anyone encountered this? I may have a defective unit.

If you bought it on Ebay I'm guessing you bought it from "other than an authorised DJI outlet?"  If the box was not heat-sealed in cellophane, chances are it's been opened, and who knows what its history might be. Did you opt for DJI Care Refresh on purchase? If so, raise a case with them online and report it as a DOA. If not, you're possibly looking at an expensive repair, unless you can get your money back through Ebay and Paypal.  Good luck with it all

Hi trojan36, I'm sorry to hear about the issue with your drone. Kindly please contact our support team via http://www.dji.com/support to open a case and send it in for a thorough diagnosis, we'll do our best to help this out. Thanks.

DJI Natalia Posted at 8-8 18:25
Hi trojan36, I'm sorry to hear about the issue with your drone. Kindly please contact our support team via http://www.dji.com/support to open a case and send it in for a thorough diagnosis, we'll do our best to help this out. Thanks.

thanks i'll do that

trojan36 Posted at 8-8 22:17
thanks i'll do that

You're welcome. If there is anything else I can assist you with, please feel free to let me know.

Just wanted to provide an update. I sent the Drone in as support asked.  It came back today with:

"Dear customer, We regret that the service is not covered by warranty based on the results of damage assessment, please find details as follow: Non warranty We will either repair it or replace it with a product that’s new or equivalent to new in both performance and reliability after payment has been received. For more information, please visit (http://www.dji.com/service/policy)"

Not sure specifically what was found but this looked to be in as new shape. I will proceed to get my refund from the ebay seller.

trojan36 Posted at 8-18 07:37
Just wanted to provide an update. I sent the Drone in as support asked.  It came back today with:

"Dear customer, We regret that the service is not covered by warranty based on the results of damage assessment, please find details as follow: Non warranty We will either repair it or replace it with a product that’s new or equivalent to new in both performance and reliability after payment has been received. For more information, please visit (http://www.dji.com/service/policy)"

Thanks for your update, I also checked your case, the payment has been finished, our team will process your case asap. If there is anything else I can assist you with, please feel free to let me know.