Sony has released the PS3 firmware 4.46 which fixes the issues the previous firmware 4.45 did.
We had reported the issue earlier where the firmware affected people who had installed a custom hard drive, and Sony has given some instructions on how to restore your PS3.
You need to go into the safe mode and from there install the firmware using a USB stick.
Here are the official instructions assuming you have already downloaded the new firmware from Sony’s website.
With the PS3 off (power light should be red), touch and hold the Power button, you will hear the 1st beep indicating that the PS3 is powering on.
Continue to hold the power button, and after approximately 5 seconds you will hear a 2nd beep.
Continue to hold the power button and after 5 more seconds you’ll hear a 3rd beep, and system will power off (Power light goes red).
Release power button.
Touch and hold the Power button, you will hear the 1st beep, again for PS3 power on.
Continue to hold and after approximately 5 seconds you will hear the 2nd beep for video reset.
Continue to hold and after 5 seconds you will hear a quick double beep. At that point release power button.
If you succeeded in activating Safe Mode, you will see a message on screen saying, “Connect the controller using a USB cable and then press the PS button”.
Connect a controller to the PS3 with a USB cable.
This should fix the PS3 and bring it back to normal state. If you cannot access the safe mode then you have to contact Sony and send in your PS3 for repairs.
The update adds trophy notification disable feature along with some stability updates.