Normally it is used as slang, its meaning depends on the context. You can use it to mean something is broken "The car is busted." It can also mean someone has been caught out doing something they should not have. Say you found someone cheating on a test you could say "You are so busted" to mean you have been caught.

Busted has both normal and slang definitions. Normal a) bankrupt or out of money. 'I can't afford to go out, I'm busted.' b) Tamed or broken (horse)c) be demoted in military rank. He was busted from sergeant to private.' Slang a) placed under arrest. 'He was busted for shoplifting' b) smashed or broken. 'He busted his ribs.'c) out of order, inoperable. 'The coke machine is busted.' d) caught doing something you shouldn't. 'I saw you take that money, you are so busted!'. e) be subject to a police raid. 'That bar has been busted three times in the last year.'

I agree with Matthew, we do need some context. My first impression is that "busted" means "caught out". "You're busted!"

Where you saw it does not matter. You getting a dictionary and looking up the verb "bust" is what you need to do. Pay attention to its slang use, though. In that case it probably meant "under arrest".