is it possible for the iphone to do a memory wipe as a result of dropping it?

A guy at work's phone appears to have been wiped clean (like the security wipe that happens after getting a password wrong too many times - he has the option to set up a new phone or restore from itunes). However, he was told by his GF that her dropping on the floor is what caused it. We're trying to figure out: is it at all possible that dropping an iphone will result in the memory getting wiped out? Or are we right to be a little skeptical about this story?