Final answer:
A diode that conducts equally well both ways is likely shorted, as a properly functioning diode should only allow current flow in one direction when forward biased.
Step-by-step explanation:
When a diode conducts equally well both ways, it is likely that the diode is shorted. Under normal operations, a diode in forward bias allows current to flow freely, while a diode in reverse bias restricts current flow. A diode that has become shorted no longer functions correctly and will not exhibit the typical behavior of allowing current to flow only in one direction. Instead, it conducts in both directions, similar to a piece of wire.