As barry said its a corrupted NAND, as I have had it myself on two units.
I repaired one of my ps3's that had the blue screen lock out crash, after messing with Rebug firmware and the settings. lol
The blue screen is when the ps3 losses data off the hard drive due to us formating it, or bad flashing or maybe bad sectors on the hard drive, or people like me messing with cfw.
I used a E3 cared reader and installed downgrader to allow me to re flash the ps3 without it needing to use the hard drive. after reseting the ps3 back to stock with 3.55 I got the red screen with white writing come up, I have seen this before and did get rid of it once, but this time i could not get in to anything I was locked out the ps3.
So I tried again with the E3 but this time i remove the power as soon as I seen the blue light come on, then I fitted the usb stick with file 1, and rebug firmware. I followed the steps you do to jailbreak it. and now she is alive again.
I have had the E3 for the day and fixed 3 ps3's so far. wicked, thanks very one here thats helped me to achieve this, that means you above as well