The same happened to me recently on my 4.5 yr old OBI100. I tripped the circuit breaker that it runs on and it never cam back up, doing the red/green flash o' death.
Browse to its ip and get the "interruption during firmware update" message. Run the update and it just loops back to the firmware update page.
Unit will not complete a factory reset, no matter how long I press the reset button for.
I can, randomly, get it to start working again by unplugging everything, plugging the power in and wait for the red/green flashes. Then plug in the cat5. This sometimes fixes it. Other times plugging in the phone cord first fixes it. BUT, it only works for about a day once I do get it working. Very unreliable at this point.
So I agree with others, some type of partial hardware failure. Something got halfway zapped
Solution... go to Amazon and order a OBi200 for $47. I paid about that for my almost 5 yr old OBi100... not complaining at all for a ~$10/yr unlimited phone service
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Also I guess the OBi100's have been discontinued? I found them on Amazon but they are around $70! Don't be fooled, get a 200 for much less
And the 200's have the USB port that you can use to get wifi working on. WHY these don't have built in wifi yet is a mystery to me. But a $20 wifi adapter isn't so bad.