It's a configuration option on the Pandora - by default it just turns off the screen, but it can be configured to turn pretty much everything off. I don't use that setting though, as I often use it as a music player with the lid closed.
I hope the Pyra case means the hinge detection thing is a bit more robust, or at least the software is more immune to the lid being opened momentarily, and shutting off the screen when it closes again. Nearly every time I carry my Pandora without a case in my back pocket around the house, when I pull it out again the lid is still closed, yet the screen is now on eating the battery up. I've no idea how that happens, as the only way I can reproduce that is to open the lid a few centimeters before closing it again almost immediately, and in my pocket it certainly can't open that far. Perhaps the case it getting deformed in some other way, causing the magnet to move too far from the sensor in another way, or hopefully less drastically, there are some significant localised magnetic fields around my house which counteract the lid speaker magnet, although I don't make a habit of walking behind my big loudspeakers, so I don't know where they'd be otherwise.