Lululemon Athletica review: gift cards 4

I had an issue I had on 09/15 with 2 of my lululemon gift cards. I have the cards physically in my possession and they were registered to my account. When I went into the store on 09/15, they were showing a $0 balance (should've been $147.66) and $0.49 balance (should've been $214.36). I contacted customer support and was told that they had both been redeemed in store in Toronto. I am located in San Diego, CA and I don't know anyone in Toronto nor do I have any idea how someone in another country could get ahold of my card numbers and be allowed to use MY gift card codes from physical gift cards on an in-store purchase. This sounds like a protocol issue that shouldn't be allowed on their part. The customer service associate I spoke to on the phone basically told me that Lululemon was not liable for my balance as this is a theft. If there was a theft, it was on their end and how they handle gift cards. The cards are physically in my possession and were added to my account. Per the fine print on the back of the gift card - "lululemon can't be responsible for lost, stolen or misused CARDS..." Understood, I have the gift CARDS physically in my possession. The CARDS are not lost, stolen, or misused. The fine print goes on to say - "great news - your BALANCE is protected from LOSS if you register the card with us on your lululemon.com account." This is where I have an issue. I did exactly that; I registered the cards on my lululemon.com account. Therefore, my BALANCE is protected under their rules. The customer service rep on that I talked to on phone was no help. Lululmeon clearly needs a change in protocol. How can they allow a physical gift card code to be used in store without the card present? Especially when that code is registered to someone else's account? I truly believe this was either an inside job or their random number generator for their gift card numbers isn't really random and someone was able to access my gift card numbers on their end.