I think it depends on the number of KO you made during your 3 lives lost. If you made 0 KO during that time, I believe you get the "Pity Smash Ball."
I'm saying this because it happened to a couple of guys online. They were doing nothing, and after 3 falls, they got it, so I'm assuming that's how it works (and you have to have the Smash Ball item on, like other people here said).
Random game thought :
Why is Bionic Commando Rearmed 2 getting so much hate? We finally get a real game and they're not even satisfied... I'm starting to hate the gaming community so f****** much...







