Harmonic reducers, crucial in industrial robots for their high load capacity and low friction, often rely on Flexible Thin-Walled Bearings (FTWBs). However, these bearings are particularly prone to failure due to the cyclic alternating stress loads they experience, stemming from their unique elliptical structure. This study presents a dynamic model for the Flexible Thin-Walled Bearing (FTWB) using a finite element approach. Stress distribution and motion characteristics were analyzed, revealing maximum stress at major and minor axis positions during operation. The model was tested under three conditions: normal, outer ring fault, and inner ring fault. A vibration test rig was constructed to gather real vibration signals, enabling model validation and analysis of vibration signal characteristics under different conditions. This research sheds light on the mechanisms of impact and fault signal generation in FTWBs, offering valuable insights for dynamic analysis and fault diagnosis in FTWBs and harmonic drives.