By default the ipython notebook ouput is limited to a small sub window at the bottom. This makes us force to use separate scroll bar that comes with the output window, when
I tried all the options above and none of them worked. This is how I got rid of the scrolling cell. Right-click on the cell, and click "disable scrolling for outputs" I know this doesn't resize the scrolling cell, but it does make my code more legible since the scrolling cells are very small(for me at least).