There are many products manufactured in certain countries where the quality of components is really low and fake safety agency marks are applied to the product labels. You could check as to where that cord reel was manufactured and if it has a legitimate safety agency listing. But along with that they have a limited life time and limited number of trip cycles before they fail. They are used in gear like this because they are low cost. They open circuit when there is a current overload and pushing the red button is designed reset the breaker back to the closed condition. The red button is part of what is called a thermal circuit breaker.
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