So I had the problem in the subject line above and I wanted to post a note about it for anyone else who has had this problem.
My car just stopped working after about 20 minutes of normal use, jumping, racing, on/off road and such, pretty average day for the Merv.
When I looked at my ESC is was blinking red rapidly and the receiver light was blinking red/green alternatively very fast as well. At first I thought, overheat, so I shut everything down and let it sit for 30 mins.
When I turned it back on, the lights were the same. I thought crap, now what!
After reading in the book the only thing I could find was potentially low voltage detected but I had hooked up a fresh battery. So I took that battery, fully discharged it then re-balanced it.
Tried it again, no go, same deal.
The oddest part was that if I turned the car on without the TQL transmitter the lights on my ESC were green (lipo mode, which was right) and the receiver was red. Then turning the transmitter on, the light immediately go into red/green flashing and I have to unplug the battery to get it turned off.
After bits and pieces of information scrounged from the web, I read about this being caused by a faulty Traxxas 2080 servo. I popped open my receiver and unplugged my steering servo and everything went back to normal.
Apparently this type of malfunction is caused by a bad steering servo.
So I ordered a ******* 390 as it seems this is the best bang for the buck. Oddly enough, I was only able to find it in one single shop out of Hong Kong...