The code is recorded in memory for XXX number of engine restarts to keep track of recent engine history, the presence of the code doesn't cause limp but the occurrence of the fault does. So once the cause of the fault is addressed, the engine will no longer limp, the code will remain in memory for historical tracking purposes.
There must be something lodged in the cooling system such as sand, it may actually require some disassembly if flushing doesn't clear it out. There should be instructions in your owners manual describing the reverse flush process, owners manuals can be downloaded from several places on the web (try seadoomanuals dot com).