
Say I have an overmodulated signal like the example above. When you demodulate this you will get distortion. Is it possible to somehow demodulate this?

Say I have an overmodulated signal like the example above. When you demodulate this you will get distortion. Is it possible to somehow demodulate this?
This signal is half way between regular AM modulation (for broadcasting music) and full double-sideband-suppressed-carrier. Because there is still carrier present you can filter this out to give a constant amplitude sine wave at only the carrier frequency. Use this sine wave and the original "over-modulated" signal and feed them into a balanced modulator (aka 4-quadrant multiplier) to recover the base-band audio.