He went on the Steve-O podcast to clarify things, and the media just went with some absurd story based on a comment he made once. He didn't lose his memory, it seems.
"I don't remember most of the details of hectic days on set."
"He can't remember anything that happened ever while on the show!" - the news
Hell, I don't remember most of what happened in high school and barely anything from middle school and prior with zero brain injuries. It is mostly not memorable, and I would expect a job to be pretty similar.