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Some passengers on the plane were in bad shape after it crashed. This means, they were in a bad condition or in a bad position. Over 80 had to go to the hospital. But the pilot was in the worst shape of all: he needed surgery. He was in the worst position because he was injured badly. If someone is in a bad situation, you can say he or she is in bad shape. A person might be in good financial shape if he or she had a lot of savings. But that same person might be in bad physical shape if he or she does not exercise.