i can't recall any specific cases (and don't feel like looking them up now) but i know there have been multiple allegations of this exact scenario you discussed. a related one is bby now traded well below the takeout price which is def helping the former founder in his takeover bid.
Yesterday we had huge volume exhaustion followed by a hammer today: not too bad odds IF price shows some strength above today's high of 7.33 that it will work its way up to $8-9.50, IMO. (I might place a buy stop limit order, stop 7.34, limit 7.38) We also have divergence forming on the MACD which gives even better odds for a follow through to the upside, that is, IF the price starts moving up. I do indeed think a short-term bottom is in, but whether it is a long-term bottom will need more evidence later. (I will be reposting this in a new thread entitled: "Is this stock good to buy now?"--not trying to steal any of the OP's thunder. I actually found the hammer (I love hammers) on a stock screener, was going to post about it, and then saw this thread too.) (PS see my recent thread: "Is this stock good to short now?")
the only way to pick bottoms like that (if you can call it that) is to go down to a lower time frame like the 30 or 15 minute or at a minimum if you're trying to pick a bottom say "go long if price above yesterday high" - but even then you get faked out like on 11/9 price went above the 11/8 bar but kept falling. yes you will miss massive short covering rallies off the bottom but you'll also miss continued plunges into the depths of despair.