Abstract: Based on the earlier revealed hidden pseudo Jahn-Teller effect which essentially involves excited electronic states we show that, with extension to solids, polyatomic systems with half-filled degenerate shells, e2 or t3, form a novel (practically inexhaustible) class of molecular and solid state materials with correlated and switchable magnetic and dielectric bistabilities. The latter are confirmed by state-of-the-art ab initio calculations, including estimation of lifetimes, for several representatives of this class, which also reveal a giant magnetoelastic effect in LiCuO2 and NaCuO2 crystals

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