So I was browsing through Installer.app for new applications and started installing some random stuff. At one point my iPhone began to act a little weird. The screen would be unresponsive and the time was wrong. I had MIM installed to change the carrier name but that wasn't working. The only thing I could do was try to run an application from "dock" but even that was unresponsive. I hard-rebooted and the screen kept showing the apple logo and random scrolling lines, alternating between the two. I thought the only thing I can do now is to restore. But to my horror, neither iTunes nor iBrickr could detect my mobile!
After a little panic-google-searching I came across a thread on ModMyiFone that told users to keep pressing the power and home buttons even after the reboot while the iPhone is connected to the PC with iTunes running. After about 30 seconds, the iPhone showed the "iTunes icon and USB cable" picture and I was able to restore the phone again.
Some say the cause of this problem is the new installer, but I'm not sure. I am now pretty careful with what I install, because it's really annoying to restore your phone and install all your favorite third party apps again! I hope this doesn't happen to anymore people, but if it does, I hope they find this post helpful!