1. Go to the “Settings” XMB menu, choose “System Update”
2. Choose “Update via storage media” (USB) or “Update via System Storage” (Internal)
Fixed PS3 999 downgrader not working
Note: Remove any DvD or BlueRay games from inter Drive because it may contain an UPDATE
01) Format portable USB drive (unencrypted) to Fat32
02) Rename 999 downgrader PUP (Rogero v3.7a Downgrader, HABIB 999 Downgrader or REBUG 3.55.4 999 Downgrader) to PS3UPDAT.PUP
Note: I used Rogero v3.7a Downgrader
03) Create a “PS3” folder on the root of the USB; inside the “PS3” folder create another folder “UPDATE“
04) Put downgrader.PUP file in the “UPDATE” folder
Note: The folder structure on the USB should look like PS3UPDATEPS3UPDAT.PUP
05) Reboot PS3 into recovery mode
Playstation 3 SAFE MODE – PlayStation
How To Put Your PS3 in Safe Mode in Real Time
Switch off the console by holding the Power button (press and hold it contentiously until the PS3 powers off).
Now press and hold again the power button. Hold it until the console beeps 4 times (one beep, one beep, then two beeps), then release the Power button.
06) Press PS Button on PS3 controller connected via USB on PS3 console
07) Select the last option “System Update” – Updates the PS3 system software.
This can only be done with an update file already saved on an external storage media.
08) Once on 3.55 Downgrader CFW, install and enable the “QA toggle.pkg“
09) By following steps 03 to 07 install Kmeaw PS3 CFW 3.55 – LV2 Patches with PeekPoke (install and enable QA toggle, dev_blind)
If you want to make sure QA flag was set, go to “Settings” XMB menu and scroll down to “Network Settings” then apply the following key combo (all at the same time)
Button combo input:
L1 + L2 + R1 + R2 + L3 (press down left stick) + D-pad Down
or
L1 + L2 + L3 (press down left stick) + R1 + R2 + D-pad Down
Leave QA flag enable
10) Thats it, the “Debug Settings” (“Edy Viewer”, “Install Package”) Menu will now appear under “Settings” XMB menu
11) Install whatever CFW 4.xx by following steps 03 to 07
Note:
1) Remove any DvD or BlueRay games from PS3 Optical Drive because it may contain an UPDATE.
2) Once downgraded from 4.xx CFW to 3.55 you will get a prompt to format PS3 HDD before you can proceed to log into PS3
Source: PS4 News – Fixed PS3 999 Downgrader Not Working Guide