This feature is available in Catalyst, Enterprise, and Ultimate editions.
Directly from a storyboard, you can convert stories to defects or convert defects to stories. Note that any tasks, tests, links, conversations, and attachments will also be converted.
Select Team > Iteration Tracking (or Sprint Tracking) > Storyboard.
In the top right corner of a story card, click the arrow to expand the action menu.
Select Convert to Defect or Convert to Story.