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A) Prototype 1983 variant.
While Hasbro was switching over to the swivel arm battle grip, they might have been toying around with the idea of changing up the colors to boost the number of different looking toys in their arsenal. A logical reason, since variants happen on a quarterly basis in some toy lines of today... including GI Joe!

B) Unreleased Listen 'n Fun Flash.
I believe there is even a picture of a mock up original 1983 Flash circling the net.

C) International Variant.
Since this figure is fully factory painted, this gave reason to think it was released outside the US. Many signs pointed to the European Action Force release. Mostly because the mystery figure's colors have the same motif as Palitoy's earlier creations. And it just wasn't logical for Mexico, or the South American countries to have a swivel arm version of Flash.