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This is why you don't buy from Walmart.

Most online retailers do not even check returns! Credits are issued most of the time once the return shipping label has been printed. They get so much crap back that I would bet they do not inspect 95% of the items, especially if cost is less than $100. Even if they did inspect items, most don't know what they are looking for. They probably saw that optic with the cover on it and assumed all was good and put it back on the shelf. I use Amazon quite regularly and will always check out the 3rd party. I am surprised Overstock.com fulfilled a WalMart order as they are usually overpriced compared to other places. That being said, Overstock probably sold it cheaper due to being an open-box item. Either way, they took a big dump on you. Make sure to leave a review with WalMart. Good luck getting your money back.
 
I had something similar happen once except it was at the store and they refunded right away. I bought a car stereo in a retaped box. Got home and found an old junky stereo someone pulled out and put back in the Pioneer box. Now, if a box is retaped, I either dig back in the shelf for another one or if it's the only one, I open it at the store and inspect. Not much you can do about online sales...but at least they are refunding for you.
 
UPDATE:

After a long painful process with walmart and overstock, I was refunded the full amount. Instead of trying again for a Bushnell, I decided to go with a primary arms reflex red dot. Love the setup so far. I'll put up a link to a youtube product review i'm doing here in a few days.
 
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