Short Trade Bankruptcy

[GordonHui]

How do the trade go when the stock you short is bankrupted?

 

[El Trado]

Then there is no share for you to deliver back, and it is all profit

 

[FSU]

A lot of different answers here. Generally a good thing, but there are risks. If the stock isn't trading and hasn't been cancelled you are at risk of continuing to pay for the short stock.

Good article here
https://www.bloomberg.com/opinion/articles/2018-04-11/-go-to-zero-isn-t-great-for-short-sellers

 

[Bad_Badness]

I usually try to cover before it is halted on the existing exchange and move on. The entanglements (waiting to go Pink, e.g.) are not worth the time, imo.