Ok , I re-created your situation, and here is what I found.

I got my old stock tx and put batteries in it. (My CX2 was bound to my DX7).
I plugged in the battery pack first....Left the bind plug out and all it did was blink red and green.
So I unplugged the battery and put the bind plug in and the orange
light started flashing.
So this must mean that either that lilttle black wire is broken on the
bind plug, or it is not making a good connection somewhere (either in the bind plug assembly or
the 4 n 1 controler.

I would say try a new bind plug. You should have had one with your original package deal and
the 4-1 comes with one.