The issues you are having now with the replacement FiiO X3 MKIII can be replicated by using either of the resume modes. In my case invoking the resume mode caused a complete meltdown. Had you tried the resume modes before with your defective unit? You are right. I should have reformatted the sd...

I purchased a X3 MKIII as soon as I found out a firmware was available to fix its initial problems. I have been following your posts and everyone else's on this thread. My X3 1st gen got wet when sailing on Labor Day and everything works but the display. Fortunately it was set as a DAP...