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Well, I had no idea the lights on the PSVR itself could flash, afaik that never happens during normal useage or when setting up. That means it's very likely that it is some kind of error-signal. For example it could signal overheating or some kind of loss of signal or loss of power/current. That could be something to investigate.
And it's possible (but not very likely) BS is triggering this error-state due to a glitch and not the error actually occuring.