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I tried holding the button when stuck on storage ok screen until the screen changes, and it worked, the reboot ended on the clock this time
My watch seems to work pretty well again- at least the whole storage ok screen process didn't reappear yet
Now the only issue that I'm aware of, is that I can't connect my phone to the watch (my phone can connect with other Bluetooth devices just fine, I just double checked that) and I'm a bit confused about that unexpected turn of event and new problem I admit ^^'
@Camo if you long-press the button do you see the low-res 'DFU' text and the '=====' going across the screen? If so I don't think it's this issue, and it could be related to you just having held the button for too long - eg effectively you just accidentally followed these steps: https://www.espruino.com/Bangle.js2#resetting-without-loading-any-code