The bug is squashed in the rivet's frame and alive in the bug's frame:

http://hyperphysics.phy-astr.gsu.edu.../bugrivet.html
The Bug-Rivet Paradox

This is reductio ad absurdum. Conclusion: The underlying premise, Einstein's 1905 constant-speed-of-light postulate, is false.

Einsteinians resolve the absurdity by superimposing an even greater absurdity - the rivet gets longer than itself:

http://math.ucr.edu/~jdp/Relativity/Bug_Rivet.html
"In fact, special relativity requires that after collision, the rivet shank length increases beyond its at-rest length d."

A famous Einsteinian (Ethan Siegel) who wouldn't be happy if you think that the rivet cannot get longer than itself:

http://pbs.twimg.com/media/CSvjJp-VEAAXmsg.jpg

Pentcho Valev