"Busted" is a term used in informal English, and there are several ways to use it. Here are some examples:
1. broken, not correctly functioning, doesn't work.
Example(s): My camera has been busted since I dropped it in water.
He busted his leg skiing.
2. caught doing something "you shouldn't have been doing", either by the police, your parents, a significant other, etc.
Examples: I got busted by my mom last night. She found out I was at a party instead of studying.