How does firefox sync password recovery work?

According to Mozilla Sync-new-security-model, Firefox servers are not able to decrypt your sync data without your password. So I figured that, the browser generates a key from your password, encrypts the data and sends it over the wire without the key.

But if I forget my password, I can still recover it, by having firefox send a password reset email. According to this page: ive-lost-my-firefox-sync-account-information, you can't recover your sync password without your email.

1. How does password reset work?


2. How is Firefox able to decrypt your data on their servers without your old key and send it back to your browser for syncing?


3. Does it stores the old key somewhere or is there some weird crypto magic going on?