0) do 2 more reboots / restarts of your Kindle.
1) On your computer: Download the hotfix:
link
2) extract the archive and copy the bin file to root (= top level) of Kindle drive. Eject the Kindle Drive
3) Go into Kindle settings and use "Update Your Kindle" option ( Menu > Settings > Menu > Update Your Kindle) to install the hotfix bin.
4) if that installer
doesn't error out all is good and you still have functional jailbreak. Do 2 more reboots once that hotfix bin installs successfully.
5) Now download and reinstall KUAL:
link
Extract the installer into
mrpackages folder on your Kindle drive. Eject.
Type ";log mrpi" (without quotes) into search bar and press the arrow icon on the right side to execute the search.
MRPI installer should start and install KUAL and then reboot.
6) Once you've reinstalled KUAL test using it to start KOReader.
7) exit out of KOReader.
8) Now you should use "OTA renamer" KUAL extension to block future firmware updates so that your can freely use WiFi when using KOReader.
Download the extension here:
link
Extract the archive into "extensions" folder on your Kindle drive. Eject.
On Kindle open KUAL > open "OTA renamer" or whatever exact name the extension is using > choose the "rename" button. Kindle should reboot after couple of seconds.
Edit: it just occurred to me that your Kindle has probably updated to a firmware newer than 5.16.2? If that is the case in order for you to be able to use KUAL and KOReader you must downgrade your firmware to firmware 5.16.2 by using "
RUNME.sh" variant of downgrader + " ;log runme" search bar command (since you don't have working KUAL to use
the actual Downgrader 2.0 KUAL extension).
Before using that RUNME.sh script you must first edit it to use the correct version code value for you Kindle model (find that info by either reading linked Downloader 2.0 forum thread or by opening the menu.json file of that extension in a text editor and finding the value it used for PW4).
So in summary: reinstall jailbreak hotfix > downgrade firmware back to fw 5.16.2.x > reinstall the hotfix AGAIN > reinstall KUAL > use OTA Renamer extension to block firmware OTA updates.