So figured out how to reset the launch bar when it is in the described state (flicks red, won't stay down). There is a circuit breaker switch rear of the panic dispense switch on the left edge of the cockpit. When that is popped out, the launch bar won't go down, but popping it back in, the launch bar works normally.
Screenshots here show the broken state http://bit.ly/2NqZVC7, and the CB switch http://bit.ly/2NrRkPx