: What happens to a short position when a company is nationalized? The title speaks for itself. Would this be the same as shorting a company that goes bankrupt? So you basically get to keep all your money?

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It would depend on what 'nationalized' means - it could mean a lot of things.

It is hard to imagine that in the US, the government would 'nationalize' a company by declaring all shares in the market as void - sure, that would mean all share owners lose all their money, but that government would be in dire straits in the next election.

On the other hand, they could buy out all share owners, like a normal take-over, and then each share holder gets his value in cash, which most would find acceptable.
This would probably include forcing all short sales to close out the positions within some time limit.