Blue, Red, White Stripes, Genius Advice, Frustration!

Very frustrating... Having purchased an iPhone 6 (jumping from a 4) i returned within a week as just too big... I then purchased a second hand but mint condition 64gb 5s running 8.0.  Everything appeared fine on Thursday when I tried the phone for the first time... however within a short period the phone switched itself off & on again twice within 10 minutes of each other.
Putting this anomaly down to myself just downloading an app... the phone settled after that and I went to bed.  Three times during the night I got woken by a buzzing noise, only to find my phone restarting with the black screen & white apple logo!  At 4am I had enough and started an online chat with apple support, they ran the diagnostics and said everything looked fine, try a restore.
The reset was done with a few errors... (-50 network error) and then iTunes simply refusing to recognise my phone... eventually the restore worked and I upgraded to 8.02 without a hitch.  5 mins later the phone went blue then red and shut down!
After turning it on again everything booted as normal and was like that for the morning (admittedly I was not with the phone all morning so I am unsure how many times it restarted)... come 2pm the phone switched off, black screen then blue then white with very faint vertical lines... then turned off.
As I was only 1 hour from my 'Genius' appointment I left it off to see what would happen instore.  Sure enough, the genius tried turning the phone on only to find a blue screen followed by white with stripes, followed by nothing... Great I thought, at least he can see the issue.  He then proceeded to try a reset which did nothing but give a black screen with 4 white lights in each corner... then out came the inspection light, no water damage visible he confirmed.  Mmmm, I'll just take it out back to a technician... 5 mins later... we took the screen off and there is no evidence of any damage, everything looks in great condition... however when the screen does this it's down to the graphics chip (he may have said graphics board etc.)... we can swap the phone for you at £199 as it's 6 days out of warranty... Great...
I declined and contacted the seller who is a trusted ebayer (history & rated) who has obviously offered me a full refund.  Last night for approx 30 mins I tried resetting the phone and constantly got a white screen, then black with 4 lights etc.  Then bingo... 45 mins after walking out of the apple store with a dead phone it came back to life again, full colour display and everything appeared as you would expect.  That lasted for approx 4 hours until late last night it switched off again followed by blue screen, then black with apple logo and came back to life!...  I purposely turned the phone off before bed, tried turning it on & got a prolonged blue screen... then black to nothing.  10 - 20 mins later the room light up and the phone was back in the room... & been ok since!
My questions are: 
1, If it's the graphics card/chip/chipset etc. (whatever the genius said)... surely it would be off and stay off )like it was when apple inspected.
2, Random one this, but if I change the name of a folder... every time the phone restarts itself or me doing it manually... the folder name changes back to what it was previous.  This leads me to believe maybe the phones hardware is fine but theres still some software issues that are causing both issues!
I can't afford to keep a faulty phone, but then again I don't want to return a perfectly good condition 5s when I may not find one in such good condition again, especially if my next 5s will bring the same issues...
As I type this its all working again... but for how long!?
Any advice on graphics hardware issues being intermittent greatly appreciated... my understanding/limited logic is if the hardware is faulty and failed, it wouldn't then work again for a period of time before failing again... would it?

I couldn't help you with the graphics issue but if I were you I would go for that full eBay refund. There are loads of 5s' on the market at the moment. Me and my partner just sold ours which were 3 months old and in mint condition. You should save yourself the hassle and refund and find another.
On a side note 6 days out of warranty for an issue which clearly couldn't have been by the user is really harsh! You should have tried a store sit in until they replaced it

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