The expression has its natural meaning. The only word that might cause trouble is "busted" = to be arrested.
You would say it of someone who has been arrested, is disgusted with something (perhaps being arrested) and who is now not to be trusted.
I suspect that the phrase, which is not common - it sounds like the comedian's own invention, is in reference to someone to whom all this has happened. If we had the context - e.g. to whom it referred, then an explanation for the use of this assonance could perhaps be given.
Edit to add:
The first link is, to my mind, deluded garbage and I can find nothing in what I could bring myself to read of it to help.
The second link uses the phrase but I can't see how it came about
The third link is a title and thus unhelpful.
The fourth link is more or less your question.
Overall, I suspect that it means, "I know what you are doing and it isn't good and, as a consequence, I have disassociated myself from you."
I believe this expression originated from a line in the 1967 song, Creeque Alley by the Mamas and the Papas - "Broke, busted, disgusted, agents can't be trusted," - the song tells about the formation of the group - this line may refer to an LSD bust by a narcotics agent that was a friend of sorts - As a new member, I can't post a link, but there is a website with the same name as the song title (creequealley) that gives a detailed interpretation of the lyrics (add www and com)
In more recent times, it has been adopted by some in the rehab community to describe the 'bottom' or 'turn around point' in an individual's recovery, whereby the individual is broke, busted (arrested), disgusted (with themselves and their life) and not to be trusted (ie, they are not trustworthy, they don't even trust themselves) -
It's something said by gamblers who lose lots of money
busted -- like gone bust... lost money
Disgusted -- unhappy about losing money
Not to be trusted -- might have to steal something, or take any small amount of money left over to keep gambling in hopes to win it all back.
Busted is a synonym for broke, without money, as well as for being arrested. I agree that it derives from the Mamas and Papas song. Funny, I always thought the lyric was "Broke, busted, disgusted, A just can't be trusted, guess we'll have to go to the C." A and C refer to notes of the scale and thus to keys in which the song was sung. There is some analysis on Creeque Alley - An Analysis that supports that as a possible reading, although they first mention the other alternative set forth by Laurence Holbrook above.
It certainly predates the source mentioned above; these lyrics were written by Woody Guthrie around the 30s/40s:
I was born working and I worked my way up by hard work.
I ain't never go nowhere yet but I got there by hard work:
Work of the hardest kind.
I been down and I been out
And I've been busted, disgusted and couldn't be trusted.
I worked my way up and I worked my way down.