on the original H2O, as the device turns on, if someone keeps holding down the power button and tapping both bottom screen corners at the same time, it will trigger factory reset. it takes practice to pull it off though and if you can't turn off/on the reader reliably anymore you might have to add the reset button to the mix too.
it will only work if the bootloader, kernel and recovery partition is still intact. the sd card itself must not be defective. however if the sd card is completely dead or missing entirely, the led will not blink, it will simply light up for a few seconds then turn off again. so blinking is a good sign
if nothing else helps you'll have to get at the internal microsd card and fix it from outside. I posted some advice on how to open the original H2O or alternatively cut a hole in the back for direct microsd access. Unfortunately its more difficult to open than other Kobos
https://www.mobileread.com/forums/sh...66#post2998466
https://www.mobileread.com/forums/sh...84#post2998984