I read somewhere, and can't remember where or how to find anymore, where this happened previously. Anybody??

Where what happened?

"Con be used on previous buyout hit?" What does this mean?

Sob. Sorry, usually I'm anal about this kinda stuff, surprised my ocd let this slip! It's cause I'm only on agm. I can't edit title for some reason. I'll delete and repost soon.
** Question was** Can Cbo be used on a previous buyout hit? I think it was allowed previously, therefore best option for NYR is using Shattenkirks massive hit.

No need, I've updated the title for you.

I can't say for sure, but I doubt it's possible to buyout an already bought out contract. And if so, I'm pretty sure it hasn't happened yet.
What you may be thinking of is the situation with Wade Redden and Scott Gomez being allowed to be bought out ahead of the shortened 2013 season.

Not buying him out again, just using that cap hit. It wasn't Redden or Gomez...

Thanks. You seem up to date, would you know the answer??

Ok. What do you mean by "using that cap hit"?
Can you provide a hypothetical example of what you're describing?

Instead of Cbo Hank -8.5m & Shat hit +6.1m = 2.4m savings.
Use Shats buyout hit as Cbo -6.1m & Hank retires Recapture hit +3m = 3.1m savings + Shats future hits 2x1.4m savings.

Are you saying remove the buyout penalty using CBO?

Since the player is actually bought out, I'm not sure if a team would be able to use their CBO to simply get rid of the cap hit. I don't remember if that was an available option the last time CBO's were available. It kind of seems like cap circumvention to me, since the player was already bought out at pre-determined terms defined by the CBA. However, these are unprecedented times with the NHL losing revenue day by day, so rules are more likely to be slightly bent to ease the burden of teams. It's hard to know for sure.