M110, flickering colors, reason

After hours of trying to figure out what causes the Dell M110 to enter this erroneous mode, we can conclude the following:
if the Dell projector is turned from on to standby while HDMI signal is still being received from the computer, the next time you turn the projector on, colors will be flickering

We use the M110 projector in one of our commercial devices. We have a couple of hundreds of them and they all suffer from this issue. If you first disconnect the HDMI cable from the projector, and then turn the projector to standby, the next time you turn the projector on, there will be no color problems.