GMGMQ & Bankruptcy Questions

I’ve got a question that a buddy and I have been pondering. Other than stupid people and your day-traders looking to make money short-term, is there any logical reason why a bankrupt stock continues trading??? I would think that 99.9% of the time that a company goes into bankruptcy, if/when they emerge from bankruptcy, they issue new stock and the old shares become worthless. I can see years down the road where someone will file a lawsuit against someone, because they bought a bankrupt stock, while someone, somewhere was making commissions on a worthless stock, and the shares were never destined to come out of bankruptcy…

People want to close shorts (so worth keeping it trading), people want to bet on the recovery value being greater than expected - sometimes the old equity isn’t worthless. But GMGMQ at $1.60? That makes the equity claim worth nearly $1bn, when unsecured lenders have taken big haircuts. That seems dumb - but when I log in to my trading platform in the UK it comes up as unborrowable, so no way to short it.

Short covering, retail trading.