I'm not sure the amount of ram is the culprit, the bug has been brought up to me by an italian user who owns the newest Firefly with 256MB of ram and I managed to replicate it on my 128MB reader.
Btw, another silly question of the day (someobody has to ask them, hehe). What does the reset exactly do? Does it delete firmware updates and restore the original firmware the reader was shipped with? Does it delete software patches for PDFreader, Coolreader etc. too?