This was actually needed, because fun fact, Starfall doesn't actually disconnect you from a HUD when the chip is removed lol.
Maybe do this instead:
lua/starfall/libs_sh/builtins.lua:47

if SERVER then
	instance:AddHook("deinitialize", function()
		for _, ply in pairs(player.GetAll()) do
			if SF.IsHUDActive(instance.entity, ply) then
				SF.EnableHud(ply, instance.entity, nil, false, true)
			end
		end
	end)
end

Could also send a signal that doesn't rely on chip being valid, solely to inform players that HUD was disconnected, since right now they won't see the Starfall HUD disconnected by Name. chat message.