- Initial Statement of Beneficial Ownership (3)

FORM 3	UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 INITIAL STATEMENT OF BENEFICIAL OWNERSHIP OF SECURITIES	OMB APPROVAL OMB Number: 3235-0104 Expires: February 28, 2011 Estimated average burden hours per response... 0.5
	Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934, Section 17(a) of the Public Utility Holding Company Act of 1935 or Section 30(h) of the Investment Company Act of 1940

1. Name and Address of Reporting Person * MARXE AUSTIN W & GREENHOUSE DAVID M	2. Date of Event Requiring Statement (MM/DD/YYYY) 2/19/2010	3. Issuer Name and Ticker or Trading Symbol OVERLAND STORAGE INC [OVRL]
(Last)        (First)        (Middle) C/O SPECIAL SITUATIONS FUNDS, 527 MADISON AVENUE, SUITE 2600	4. Relationship of Reporting Person(s) to Issuer (Check all applicable) _____ Director                            ___ X ___ 10% Owner _____ Officer (give title below)          _____ Other (specify below)
(Street) NEW YORK, NY 10022        (City)              (State)              (Zip)	5. If Amendment, Date Original Filed (MM/DD/YYYY)	6. Individual or Joint/Group Filing (Check Applicable Line) _ X _ Form filed by One Reporting Person ___ Form filed by More than One Reporting Person

Table I - Non-Derivative Securities Beneficially Owned
1.Title of Security (Instr. 4)	2. Amount of Securities Beneficially Owned (Instr. 4)	3. Ownership Form: Direct (D) or Indirect (I) (Instr. 5)	4. Nature of Indirect Beneficial Ownership (Instr. 5)

Table II - Derivative Securities Beneficially Owned ( e.g. , puts, calls, warrants, options, convertible securities)
1. Title of Derivate Security (Instr. 4)	2. Date Exercisable and Expiration Date (MM/DD/YYYY)		3. Title and Amount of Securities Underlying Derivative Security (Instr. 4)		4. Conversion or Exercise Price of Derivative Security	5. Ownership Form of Derivative Security: Direct (D) or Indirect (I) (Instr. 5)	6. Nature of Indirect Beneficial Ownership (Instr. 5)
	Date Exercisable	Expiration Date	Title	Amount or Number of Shares
Warrants	2/19/2010   (2)	2/18/2015	Common Stock	4544691   (1) (2)	$2.583	I   (1)	By Limited Partnerships   (1)
Convertible Preferred	(2) (3)	(5)	Common Stock	3224339   (2) (4)	$2.6362	I   (4)	By Limited Partnerships   (4)

Explanation of Responses:
( 1)	This is a joint filing by Austin W. Marxe (Marxe) & David M. Greenhouse (Greenhouse). They share voting and investment control over all securities owned by Special Situations Fund III QP, L.P. (QP), Special Situations Private Equity Fund, L.P. (PE), Special Situations Technology Fund, LP (Tech) & Special Situations Technology II, Fund, L.P. (Tech II), respectively. 1,871,348 warrants are held by QP, 1,336,667 Warrants are held by PE, 187,134 Warrants are held by Tech & 1,149,542 Warrants are held by Tech II. The interest of Marxe and Greenhouse in the shares of Warrants owned by QP, PE, Tech, and Tech II is limited to the extent of his pecuniary interest.
( 2)	Pursuant to the Certificate of Determination of Rights, Privileges and Restrictions of Series A Convertible Preferred Stock and Warrants dated February 18, 2010, the holder of such Preferred Shares and Warrants shall not have the right to convert any portion of the Preferred Stock or exercise any portion of the Warrant, to the extent that after giving effect to such conversion the holder would beneficially own in excess of 19.999% of the number of shares of Common Stock outstanding.
( 3)	Preferred Shares are convertible at any time after the earlier of (i) the Record Date and (ii) the date thirty (30) days after the filing of this Certificate of Determination of Rights, Preferences, Privileges and Restrictions of Series A Convertible Preferred Stock with the Secretary of State of the State of California.
( 4)	This is a joint filing by Austin W. Marxe (Marxe) & David M. Greenhouse (Greenhouse). They share voting and investment control over all securities owned by Special Situations Fund III QP, L.P. (QP), Special Situations Private Equity Fund, L.P. (PE), Special Situations Technology Fund, LP (Tech) & Special Situations Technology II, Fund, L.P. (Tech II), respectively. 233,333 Preferred shares are convertible into 1,327,669 Common Stock are held by QP, 166,666 Preferred shares are convertible into 948,335 Common Stock are held by PE, 23,333 Preferred shares are convertible into 132,767 Common Stock held by Tech & 143,333 Preferred Stock are convertible into 815,568 Common Stock held by Tech II. The interest of Marxe and Greenhouse in the shares of Preferred Stock owned by QP, PE, Tech, and Tech II is limited to the extent of his pecuniary interest.
( 5)	No expiration date.

Reporting Owners
Reporting Owner Name / Address	Relationships
	Director	10% Owner	Officer	Other
MARXE AUSTIN W & GREENHOUSE DAVID M C/O SPECIAL SITUATIONS FUNDS 527 MADISON AVENUE, SUITE 2600 NEW YORK, NY 10022		X

Signatures
Austin W. Marxe		3/1/2010
** Signature of Reporting Person		Date
David M. Greenhouse		3/1/2010
** Signature of Reporting Person		Date

Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly.
*	If the form is filed by more than one reporting person, see Instruction 5(b)(v).
**	Intentional misstatements or omissions of facts constitute Federal Criminal Violations. See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
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