About two weeks ago, I answered a question and was rewarded with a +500 bounty. See, I don't really much reputation. I'm at 448 on Stack Overflow. So when that question was deleted for whatever reason, I was shocked! I had +4 upvotes, and it was marked best answer. Based on my understanding, the OP couldn't have deleted the question himself, so why did I lose my bounty? And why in the first place would anyone lose reputation for a bounty after the question got deleted? That doesn't make any sense to me.
It was a crappy question that was looking for recommendations. The bounty should have been manually removed and the question closed a long time ago. You really should never have been awarded it in the first place. Well, that's the sucky thing about having a huge backlog of flags in the queue on Stack Overflow.
Upon deletion of the posts, the reputation events got reversed, which includes the bounties.