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You could check the SD card for defects (read errors) maybe you just need a new one.
If you have it open anyway you could disconnect the battery to simulate a hard power off without waiting for the battery to actually run out entirely. Although I'm not sure how/why that would fix things.
The only thing I can think of that would cause reboots is sickel, but that should be gone after a factory reset so ... unless performing firmware update is part of the loop, i.e. you're registering with Kobo every time ... not really sure what's going on with your device. Good luck.
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