First time I`ve heard of issues with a Park cable cutter myself. I`ve used a dozen different ones and they all worked flawlessly on cables. These is some deformation on cable housing. but I haven`t found a cutter that dosn`t do that.

Have also used Pedros cutters and the cut on housing is less square and the Pedros also lacks the crimping functionality thats built into the Park Tool design.

But sounds like you`re getting good customer service from them. Post an update when the replacement shows up.