system
A chat on subreddit /r/wallstreetbets
human
not at all. Bankruptcy means that you get shares for pennies IF the company assets are worth less than what it owes. Hertz and Toys R US are actually recovering quite well and Best Buy I believe has gone bankrupt as well and is trading at $80+.  


If the company shares go to nothing you can cover your shorts for very little but you still have to cover the shorts. Martin Shkrelli bought up all the shares of a bankrupt company and recalled ALL the shares and caused a short squeeze by himself.
gpt
Often in bankruptcy new shares are issued and the old shares are retired worthless. The new shares are then given to creditors in lieu of cash.