system
A chat on subreddit /r/wallstreetbets
human
it literally can't, bankruptcy is like hitting the powerball if you are shorting a company
gpt
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.