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I remember we used to do something similar for NiCd batteries in the early days (~1983). We slowly charged up a big capacitor and then discharged it through the rechargeable battery. It blasted apart conductive paths in the battery that were shorting it out. It helped the battery for a while, but it would never return to new condition, and you had to blast it more and more often. I'm not sure if it's the same process with LiPoly batteries, but it might be.
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