1) It's shallow and can't accept flowable/gasket maker silicone without it falling out quickly. Get some pads.
2) Where do you use your yoyos at? Anywhere that would have excessive amounts of moisture aren't good places. Also, try cleaning it, lubing it, and playing with it for a while to break it in.
1. sigh... ok
2. well i live in ohio the wether is really stupid
it isnt that humid or moist right now which is when all my bearing are deciding to crap up some are still playable
also i have cleaned them and added 1 needled head of lube played then 1 drop and still responsive and sounded really weird