The "Bad Epilogue" is played in Resident Evil Outbreak File #2 if the player escapes the City without Linda. The epilogue implies the t-Virus Outbreak has gone viral worldwide as the closing shot reveals a newspaper with "Worldwide Bloodshed" as the headline.
Before long, as they always do, people stopped talking about the disaster which struck down the once peaceful town of Raccoon City.
Time, as they say, heals all.
Yet, even so, we must never forget about the horrific events leading up to the catastrophe, or history will surely repeat itself.
However, the harsh reality may be that mankind lacks the power to close the book on this disaster... once and for all.
- Ara, Masui, ed (2004). BIOHAZARD OUTBREAK FILE 2 GRAND BIBLE. Japan: Capcom.