The flash chip is not affected by the state of the adjoining
magnetic fields. You did not disrupt its operation when you
held a magnet near it. Flash is sensitive to very high electrical
fields, radiation, or perhaps UV light (only if the top of
the chip was removed so light could strike it).
Years ago, the ability of light to erase flashable memory, was
a feature. These devices had a "window" on top, so you could
erase the contents by shining a UV light on the device for 20 minutes
or so. Now, flash can be erased electrically, so they no longer
put a window on them like this. I used to erase trays of these
under UV light in the lab.
http://www.antronics.co.uk/portfolio/flashram/eproms.jpg
*******
If you use a degaussing coil to remove the residual magnetism,
that could induce an AC voltage on some of the conductors. I
don't see a particularly good reason to be using a degaussing
coil on it. So that would be a needless risk. A degaussing
coil will not revive the flash.
Flash memory can be damaged by static electricity. Maybe
that is what broke it. Or, perhaps one of the four
conductors leading to the USB connector, is cracked.
And that electrical connection failure is what is
preventing it from working. Many flash sticks are poorly
designed, such that if any force is applied to the metal
connector on the end, it can cause a connection to crack
and fail.
The flash is usually separated into at least two chips.
The design looks like this. Small capacity devices have
one Flash chip, while higher capacity ones can hold two.
USB ------------- Controller ----- Raw Flash
connector Chip Memory (1 or 2 chips)
There is a picture of that, here, showing room for two
flash chips.
http://en.wikipedia.org/wiki/File:Usbkey_internals.jpg
At a data recovery firm, they can probe the flash memory
chip directly, to bypass a failed controller chip. That
is about the only opportunity for data recovery on a
USB flash. If it is the Raw Flash chip which has failed,
then your data is gone.
Paul