I am not at my bench to test this but it should work. Also, your pauseus 50000 is very fast. Try using pause 1000 to space the flashes at 1 second intervals.

X var byte
y var byte
clear 'reset both to 0

start:
If button1 = 1 then start 'wait for button push
let x = (x + 1) 'count button presses

flashled:
High led : Pauseus 50000 : Low led : Pauseus 50000 : Let y = (y + 1) 'count led flashes
if y < x then flashled 'flash the led same number as button pushes
if x >= 10 then clear 'reset both counters after 10 button pushes & flashes
goto start