Iphone 4 suddenly burned!

My iphone 4 just got burned the day before! It was 4:30 am, I was sleeping and my phone was charging just beside me. I was waken up by the plastic smell, when I woke up the room had been full of smoke and my iphone grilled completely! It was so dangerous because I could have been hurt and the whole apartment could have been on fire!
I brought it to Studio A which is Apple's reseller and they said they cannot take it because it is their regulation to not to see the inner part of the phone. Then, I brought it to the store where I bought it, they said the parts are completely destroyed and they can only give me another second hand iphone which is charged because the warranty is expired.
I've been using my iphone for one and a half year with no problem at all and my charger is the orginal one. What should I do now?
I took some photos to prove my issue.

I was using my iphone less then 5 min earlyer full charge in it and its in a protective case.  I put it in my pocket and when i took it out it seems the iphone is dead and wont respond to anything!

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