Well that's not good. Did you have either or both of the device's phone ports (the RJ-11/14 jacks) connected to your premise's phone wiring? If so, that's a common entry point for power surges, separate from the AC wiring. Another entry point would be an attached telephone that is powered by an AC/DC "wall wart".
The flashing LED normally indicates that the line is off-hook. If you disconnect all telephone cords from the device, and either or both of the phone LEDs are flashing, then the unit's telephone interface is fried, and not repairable. You could try a restore to factory defaults for the heck of it, by doing this:
- Unplug all cables from the device and turn it upside-down.
- Find the recessed reset switch. It is a small round dimple with a hole in it. Using a straightened paper clip, gently depress the switch until you feel a click and hold it there.
- With your other hand, plug in just the power cable. Wait at least 10 seconds, then release the switch.
- Wait while the device resets then reboots
- If either or both of the phone LEDs are still blinking on and off, it's fried, and it's time to buy another one.
