This has actually happened to a friend of mine last year, although it may be an exception rather than the rule. He is a pre-med from Cali and applied for the 2007-08 cycle. He was waitlisted by St. Louis U near May (did not get in), and rejected by all others. He re-applied early in the 2008-09 cycle, hoping to get into a Cali school since he did not want to leave the state. However, he was accepted early (Sept - Oct) by St. Louis without an interview, and again was rejected by all Cali and OOS schools. Without a choice, he went to St. Louis last year as a MS1. My guess is he must be one of the top choices on the waitlist, and the school considered him qualified to be accepted in 07 except there was no room for him. So they accepted him right off the bat in 08.