So i should just throw it out and buy a new one? All these Chinese made step up transformers are built the same or with similar standards.
I hate to put it in those terms, I really don't like giving up on something. Can you raise a case and get a refund?
Unfortunately, while the world provides a demand for such stuff, they will keep producing ever worse rubbish (not a dig at you btw!). I
have seen better Chinese ones, if you try various search terms you might find some images on the forum, but I would seriously recommend getting a locally sourced (and preferably manufactured) one so that you can examine and return it easily and get the safety that you need.
The one you bought screams extra gimmicks to make it look better at very little manufacturing cost - the USB port, multi-tap input voltage switch etc. Go for one that just provide the basic function, 120V in 220V or 230V out.
preferably on a safe output connector (that 220V output socket is commonly known as a death socket, similar the deathadaptors due to the amount of exposed copper and is illegal in most 230V countries). As a 'private import' the responsibility transfers to you (assuming you bought from Ali etc.) [Edit: actually, I've seen worse (bigger holes)].
I may be overly pessimistic, somebody else might see more opportunity for salvage but I suspect not.