I've helped countless Windows Phone users troubleshoot devices, including a recent case with a close friend—a dedicated Windows Phone enthusiast—who eagerly wanted Windows 10 Tech Preview on his device ahead of the official release. Using my Windows Insider account, we successfully updated his Microsoft Lumia 540 to the latest Windows 10 build, verified functionality, and planned a reset for his own account.
However, the reset process failed dramatically: the phone powered off during restoration, showed spinning gear icons, but ultimately displayed a sad smiley face after the Microsoft logo. Standard soft and hard resets (power + volume down) didn't resolve it. As a last resort before service center intervention, we flashed the stock firmware—a proven method I've used successfully multiple times.
Important Note: Reserve this for when all else fails, as it requires a stable internet connection on your PC for downloading firmware directly via the tool. Expect a large file download.
Step 1: Download and install the official Windows Phone Recovery Tool (supports Windows 7/8; test on Windows 10 if needed). Follow the installer prompts.

Step 2: Launch the tool and select your device type (HTC or Lumia). It will detect your phone. If stuck on spinning gears, force restart with volume down + power to reach the Microsoft logo screen for detection.

Step 3: Once detected, choose the desired firmware—typically the latest available. For the Microsoft Lumia 540, it was about 1.66 GB, so ensure a fast connection.


Step 4: After download, click Install Software to flash. The process takes minutes; a red screen on the phone confirms flashing is underway.

Your Windows Phone will now be restored to factory condition. My friend continued with Windows 10 post-recovery, updating and resetting without issues. Armed with this knowledge, you're equipped for similar scenarios.
This straightforward process from Microsoft is ideal when standard resets fail and service visits aren't feasible. Drawing from hands-on expertise, it reliably revives devices. Encounter issues? Share details in our discussion forum—we're here to assist and learn from your experience.