Can a bad grade in a class be negated by a good grade in a more advanced class?
In general, can (and will) good grades in more advanced classes negate bad grades in prerequisite classes in the context of graduate admissions?


Only to a very limited extent. Getting a C (or F) in calculus during Freshman year is likely to be completely ignored if you got straight As after that. Other than in such extreme examples, no, I would not expect to be able to negate past grades. But of course, each grade is only one data point, and additional data points can significantly improve your overall record. 


  roughly B-, which is in significant contrast to my near straight A transcript.


So, this is an outlier. Like in any other sort of data analysis, a single outlier in an otherwise homogeneous record is unlikely to have much/any effect. Sure, getting a good grade in the more advanced course could make it even more clear that this outlier was not related to the subject. But it seems like you are already on track to get put in the highest "tier" with respect to GPA, so you may want to consider investing time on the other facets of your application.