Wrong passcode RESET my phone and lost all data!!!

This morning my wife went to use my phone, she wanted to show my daughter some photos I took yesterday. She wasnt aware that I changed my passcode recently (she knew my old one). After attempting to enter my old passcode 3 times incorrectly, the phone shut down to the black + apple logo boot screen and came back into the factory reset state (the same state as when you buy the phone, with the welcome/setup flow).
I was baffled at how this could have happened, so I called Apple support. The technitian I spoke with had no idea how that could hav happened and asked me to check for iCloud or iTunes backups. Unfortunately I had not backed my phone up in the past 2 weeks of using my new 4S, and I didnt setup iCloud backup. So there was no solution available from Apple, I had to start all over and lost all my data.
After looking into this more, I cannot figure out how this could have happened. I did not set the Passcode setting to erase all data after 10 failed passcode attempts (plus my wife only tried 3 times).
I assume this is a big bug in the new OS (5) or some clever scam to get people to start using iCloud for backups. Word to the wise, backup or use iCloud, and check your passcode settings for that erase feature. If anyone has any clue how this could have happened I would love to hear.

I do, but it is from a few weeks ago when I backed up my old 3GS to restore my brand new 4S. So I did restore to that backup but lost the past 3 weeks of photos, apps changes and more. I just had a baby too, so I really screwed the pooch by not backing up or using iCloud. I just cant imagine the data isnt still on the phone somehow, but maybe it did get wiped.
In any case, seems like a scary bug out there that others may hit, wanted to post this to help others.

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Press the 'Accept Solution' icon if I have solved your problem, Kudos my post if my advice has helped you!

Wrong passcode RESET my phone and lost all data!!!

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