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Here is some general advice. Shredders have an interlock to be sure they don't run while the basket is not in place. They don't want you holding the head unit and it starts running and shreds your fingers. So you need to look for the switch that tells the head unit that it is in place over the basket. I'm guessing here but it might be something like a little plastic protrusion that pushes into the head unit to activate a swith. It is possible that the little plastic piece is broken and is not activating the head unit. That would explain why the display thinks that the basket is ajar or misaligned. BE CAREFUL if you tinker with the interlock and be sure it is unplugged!! That is an ORDER!
You will first need to unplug your shredder. On either side on the shredder head, there are grooves. These are finger grooves. Place your fingers inside the finger grooves and lift up. This will remove the shredder head from the waste basket. Simply empty the waste basket, replace the shredder head and plug back in.
I have a model PS-026/B1 which has a safety switch that detects when you have the shredding head sitting on the basket or not. If not positioned correctly or, if switch is now damaged/defective, this will prevent power from activating anything.
Sorry don't mean to point out something obvious, but are you being shown any indication lights that the waste basket is not seated correctly in the bin or the head? If not, then you may want to try and check these connections anyway. Lights can burn out.
I had this same problem. This is what I did to fix it.
When I went to ShredCare.com (the recommended web site for technical support of this particular shredder), I read that 'Most models of shredders have a safety interlock switch that is activated by the basket.' Upon looking closely at my basket and the shredder, I found this safetly interlock switch and made sure to align it with the proper position within the basket. There is only ONE way to place the shredder on the basket and have this safety interlock switch activated. The switch is located on the underside of the shredder. Align this switch with the ridge on the inside of the basket. Listen carefully and you will hear the switch 'click' when in the right position. Mine is very touchy. I've even had to press in on the side of the basket while shredding to make sure that the ridge and the switch are making contact.