A single pin is used to set individual / gang mode as well as output the suspend flag. This is done to reduce the pin count.
The individual or gang mode is decided within 20 µs after power on reset. It has a setup time of 1ns. 50 to 60ms after reset, this pin is changed to output mode. CY7C65642 outputs the suspend flag, once it is globally suspended. Pull-down resistor of greater than 100K is needed for Individual mode and a pull-up resistor greater than 100K is needed for Gang mode.
See this feature described in the datasheet. Also, check whether this is what the customer sees in the waveform.