Does "Initializing Device" wipe data?!

I was having issues so I hit the reset button. I immediately saw that the Ethernet cable had been pulled out (probably as I was moving the Mycloud to be able to press the reset button) and that the plastic clip of the cable that holds is securely in place had broken off, so it must’ve been loose all along causing my intermittent connection problems.
I was happy to see that the it was just a loose cable. So I replaced it with a working cable. When I went to the dash board I was told “Initializing device”! I didnt wanna lose all my data so I disconnected the cable.
My 2 questions are

  1. why is it initializing? I read that if you reset with power off it will restore everything back to factory setting (wiping drive of all data I assume). Does this also happen if you reset without Ethernet connection?
  2. Does initializing wipe all my data
    2b) if so how do I recover data?

I had literally just started to back up this drive which had not been backed up in the last 2 years do to health issues. Losing 2 yeas of data would be really brutal.

Thanks

Pressing the “reset” button on the back of the single bay/single drive My Cloud does not erase any user data. See the following WD Knowledge Base Article for what My Cloud Dashboard settings are reset when one performs a 4 second or 40 second reset:

My Cloud OS 3: Pin Reset & System Only Restore a (single bay) My Cloud
https://support-en.wd.com/app/answers/detailweb/a_id/24022

The My Cloud Dashboard does have a feature to erase user data (quick erase and secure erase). See the following WD Knowledge Base Article for more information about the System, Quick and Full Restore options:

My Cloud: System, Quick and Full Restore a (single bay) My Cloud
https://support-en.wd.com/app/answers/detailweb/a_id/3034

There is also the following WD Knowledge Base Article (relevant for the My Cloud Single-bay (WDBCTL) with firmware 04.xx.xx) that may be relevant to your issue:

My Cloud OS 3: Single-Bay (Amber - Yellow - Orange) Power LED and Initializing Device Message
https://support-en.wd.com/app/answers/detailweb/a_id/16024

Initializing Definition & Meaning - Merriam-Webster

Your WD My Cloud is starting.