On a world with no atmosphere, the bug’s fate would resemble our own. The terminal velocity issue depends of course on the masses of the accelerating objects (the bug and the world) and the duration of the “fall” It’s only our atmosphere that puts a limit on the velocity of the fall. The bug if “dropped” from above our atmosphere would burn up like any other shooting star. Remember the dictum about dropping a feather and a10 ton block from 100 feet above the moon, and both objects arriving at the same time?