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TUSB8041: D+ voltage 2.64V on Kingston memory stick

Part Number: TUSB8041


We are facing one intermittent issue that Kingston memory stick cannot be detected by TUSB8041. The issue only occurred under two devices both connected : one is an off-the-shelf keyboard(low-speed HID), the other is the specific Kingston USB 2.0 memory stick(high speed device). 

By investigation, upon keyboard insertion,  a high pulse with amplitude 3.0V on its D- is seen. But on Kingston memory stick, the voltage on D+ is pulled to 2.64V and then it was kept forever, for which my understanding is that hub failed to detect the device. 

Is this 2.64V violating USB spec in terms of device speed detection requirement? Any idea why the Kingston memory stick can always be detected if the keyboard is not connected?