I'm going to piggy back Tuesday's Alterian Ghost Factory spotlight post with a few articles written about the urban legends surrounding the Ghostface mask.
An argument can be made that the Ghostface mask was born at the Alterian Ghost Factory, and not Funworld. Personally, I don't have a strong opinion either way, as both materials featuring Funworld's "Peanut-Eyed Ghost" and Alterian's "Wailing Ghost" both seem to start being distributed roughly around 1990-1991. Although I will say, have heard stories from several folks in the industry that insist that the Alterian version came first. Here are some of the early Alterian Ghost Factory ads and collateral materials that feature the Wailing Ghost...
Either way, there are several stories and fun urban myths that have surfaced as to the origin of the mask. Here are a few...
Fangoria Article on the FunWorld origin