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Take that 'new' telephone cable away, and put in the old one, or any other cable. It is almost certainly shorted out or otherwise defective, and seems to have put the fax electronics into this fit of odd behavior.
While doing that, turn the Epson device Off. And leave it Off for at least 10 minutes, even after connecting the old (or, other) phone cord.
That should help. Let me know what the result is, please. Thanks.