This is the crux of it, and it's mostly verbal sleight of hand, with Mihran shuffling the cards and pulling stuff out of his sleeve. He's good at it.

But I seem to recall that he did admit that the Flashback contains RAM. Why would it contain RAM if the processing is done in the flash memory? The RAM is for processing data, flash for storing it, as shown in Figure 1.

Anyhooo . . . the facts are on our side.