This only resets your iPod, but will not restore it to factory settings. In that case, you’ll need to use iTunes or Finder to clear your iPod.
Keep in mind that if you don’t wait at least 10 seconds, you will effectively have turned it off and turned it back on again and might not fix anything. The full 10 seconds are needed for the reset to happen.
If you’re using the iPod Shuffle 2G or 4G, slide the power switch to the “On” position instead of toggling the playlist button.
Look at the lights to see what your charge status is: green means you have a high charge, orange means you have a low charge, and red means you have a very low charge. No light means your Shuffle doesn’t have a charge at all.
If the light on your Shuffle is blinking orange, it’s in use as a disk on your computer and may not be charging. [3] X Research source
Connect the iPod Shuffle to your computer and launch iTunes (Windows) or Finder (Mac). Click on the iPod Shuffle when it displays in iTunes or Finder, then click on the Summary tab. Click on “Restore,” then click on “Restore” again to confirm you want to restore your device. iTunes or Finder will restore your iPod Shuffle to default factory settings and install the latest software. Wait for iTunes to inform you that your restoration is complete, then disconnect the iPod Shuffle from your computer. Your device will now be restored to the original factory settings.