Green’s Dictionary of Slang

1. (US campus, also bust) vtr., to expel a student; as vi., to be expelled.

1959		‘Andrew Shaw’ Campus Tramp 76: ‘[Y]ou’re going to bust out if you don’t start getting to classes. Admittedly the academic standards aren’t sky-high around this emporium of learning, but they do flunk people out from time to time.
1966		(con. 1958) R. Farina Been Down So Long (1972) 40: ‘They busted me out at midterm [...] but I appealed.’ ‘They can’t bust you, Heff.’.
1996		(con. WW2) P. Fussell Doing Battle 89: For those who busted out, the Infantry School offered a not terribly convincing consolation [etc].

2. (US) to ruin financially, esp. through gambling.

1960, 1975		Wentworth & Flexner DAS.
1990		S. Morgan Homeboy 48: The casual contempt of a blackjack dealer busting out a desperate gambler.
1991		in J. Breslin Damon Runyon (1992) 119: Rothstein went to the office of his stock brokerage — a bust-them-out operation.

3. to ruin, destroy.

1967		P. Thomas Down These Mean Streets (1970) 51: Sometimes, the shit ran smooth until something just had to happen. Then we busted out.
1989		Pileggi & Scorsese Goodfellas [film script] 29: You bust the joint out.

4. to go bankrupt.

1991

J. Breslin Damon Runyon (1992) 86: The joint busted out and the owners [...] showed up at the building at night with gas cans.