I have come to notice this discrepancy in image reading order when using texture with readImage vs texture with sprite in a mesh.
For some odd reason if you use for instance
mesh.texture = readImage("Documents:Imagename")
then Documents:Imagename will be read in upside-down and possibly flipped where as if you were to use
mesh.texture = sprite("Documents:Imagename")
then Documents:Imagename will be read in rightside-up.
The weird part is they both are pulling from the same source but the order the pixels are read in is not the same or atleast it doesnt seem that way.