you need to leave immediately. you have now been out of status since your last h1b expired. any days out of status hurts your chances to get future visas and you absolutely cannot apply or change to another visa in the u.s. in order to do that you need to be in a valid visa status and you are not. so you need to leave.
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Your are out status now and cannot extend your status or change status without leaving the U.S. and returning on a new visa. You have been accruing unlawful presence as of the denial and should leave the U.S. as soon as possible.
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I agree. You can go home, file a new H-1B petition and request premium processing to you can hopefully be able to return ASAP. I would also want to know why the H-1B petition was denied.
Lynne R. Feldman, Attorney at Law
Concentrating in Immigration and Nationality Law
2221 Camino Del Rio South, Suite 201
San Diego, CA 92108
phone: (619) 299-9600, facsimile: (619) 923-3277
Formerly Adjunct Professor -- Immigration law
University of Illinois College of Law