It is possible to "lock" the fuel arm in the empty position. There's supposed to be a spring that keeps it from doing that, but that might have worn out?
Check the connections, but if the connections on the bottom were disconnected or bad then your fuel gauge would be flashing. If the circuit isn't completed for any reason then the gauge flashes.
There isn't any springs to keep the float arm from sticking but there is two plastic protrusions that stick out and limit the range of motion of the float arm. Actually, when trying to remove the fuel pump, (without releasing the float level assembly with the tab-see below picture) the part that sticks IS THE LOWER float arm stop. If someone forced the fuel pump out AND BROKE THAT TAB, it may be the problem. I have gotten the pump out in the past without breaking the tab BUT ITS EXTREMLY LIKELY to BREAK. The first picture, at the very top, the "L" shaped plastic is a STOP for the float arm, seen directly behind it (silver bent arm).
I strongly suggest to release the pin and pull out the assembly separated. Upon re-assembly, it can go back in as ONE unit (doesn't make sense). (I just replaced my tank about a week and a half ago as well as approx 2 years ago when I bought the bike crashed..)
For your problem, I suspect your going to have to pull the pump (as noted above) and check movement of the arm and the stops. The unit itself could be worn out. To check that, plug JUST THE FUEL GAUGE (still attached to the pump)
(DO NOT PLUG IN THE PUMP)to the main harness and actuate the arm up and down while watching your fuel gauge. Check for straightness of the arm, any binding Also make sure the float itself is
still attached to the end of the arm. Its been posted here previously of the float itself coming loose.
PS: Get the tank as close to empty as you can as it'll be much easier to handle, later clean up and the fire hazard somewhat reduced. I used an old soft piece of carpet with a super soft towel to rest the tank upside down on to prevent any scratching while the tank was upside down..
Disclosure, pic's are not mine but from another member...