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1998 Honda Civic hatchback, locking mech on hatchback will not release. Fix?

(1998 Honda Civic)
in Cincinnati, OH on July 31, 2014
My 1998 Honda Civic DX, hatchback has developed a problem with the hatchback's lock. One week ago we discovered that the external release handle will not open the hatchback now. When testing locking/unlocking with a key, I can see that the locking post moves up/down as normal. Yet, the hatchback will no longer unlock. I did lubricate the hatchback mechanism about 3 weeks ago with WD-40. Worked fine at that time. Any suggestions?
Thanks!

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