I guess this is one of those rare situations where jailbreaking has its downside.
To me, it sounds like if you jailbreak your iphone on VM, they can find out and flag you.
On one side, if VM's TOS says you can't jailbreak, well there's nothing you can do about it..
But on the other hand, I'm pretty sure a law was passed where it's perfectly legal to jailbreak an iphone on any carrier, but it just voids the manufacturer warrantee.
You should definitely research it more, because to me, regardless of any TOS, it seems to me that something fishy went on an you got screwed out of $600+ for doing something completely legal.
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