  We present the first search for dark matter-induced delayed coincidence
signals in a dual-phase xenon time projection chamber, using the 224.6 live
days of the XENON100 science run II. This very distinct signature is predicted
in the framework of magnetic inelastic dark matter which has been proposed to
reconcile the modulation signal reported by the DAMA/LIBRA collaboration with
the null results from other direct detection experiments. No candidate event
has been found in the region of interest and upper limits on the WIMP's
magnetic dipole moment are derived. The scenarios proposed to explain the
DAMA/LIBRA modulation signal by magnetic inelastic dark matter interactions of
WIMPs with masses of 58.0 GeV/c$^2$ and 122.7 GeV/c$^2$ are excluded at 3.3
$\sigma$ and 9.3 $\sigma$, respectively.
