So I have managed to get failsafe working (thru telnet), but running into problems when trying to ssh.
root@(none):/# ssh 192.168.1.1 -l root
ssh: Exited: Error connecting: Connection timed out
root@(none):/# ssh 192.168.1.2 -l root
ssh: Exited: Error connecting: Connection refused
Hm, if you are logged in on telnet, where are you trying to connect with ssh? i mean, the failsafe is already running on telnet for you to access. and it shows that you are logged in..
I suggest you, when logged in on telnet do:
more /etc/config/network
Show the output here. I assume it is a fixed ip-address you set a while back.
Put your pc on an ip on the same subnet, with that, you will be able to access the web admin using the ip you got from the above command and configure the unit again.