Cannot Remove Watermark on Specific Images

I had the watermark to be added automatically to uploaded images, and that’s cool. But I just recently updated the logo of the site. So I needed to upload a new version of it.

I uploaded the logo via the media uploader. Yes, the new uploaded logo automatically used the watermark. I have to remove it but then it won’t let me. The logo resembles the watermark so using it to itself is redundant.

When I click on the “Remove Watermark” on the image, it does remove it but after refreshing the page, the watermark reappears. I tried checking if the image displayed at the site has no watermark, still there.

I tried unchecking the “Automatic watermarking” and “Manual watermarking” then tried uploading the image again. No luck.

Any way around this? Should I disable the plugin first before uploading the logo?

By the way, the link to the page provided will not let you see the actual page. It is still under construction, so nothing to be seen but an announcement about the site.

The page I need help with: [log in to see the link]