I just had this happen also. I determined it was likely an issue with the remote firing signals constantly. Try bringing the remote very far away from ATV and see if the blinking stops. This can allow you to regain control of the ATV via the iPhone remote or in my case a Harmony. I haven’t had time to try to get the remote back working but was going to try that remote restart when I do. Sounds like that may not work.
I just had this happen also. I determined it was likely an issue with the remote firing signals constantly. Try bringing the remote very far away from ATV and see if the blinking stops. This can allow you to regain control of the ATV via the iPhone remote or in my case a Harmony. I haven’t had time to try to get the remote back working but was going to try that remote restart when I do. Sounds like that may not work.