Warning: SPOILERS ahead for the AHS: 1984 episode "Red Dawn".
In typical American Horror Story fashion, all is not what it seems when it comes to AHS: 1984's innocent-looking summer camp, as the recently reopened Camp Redwood was revealed to be, in fact, purgatory. Here's why some of the deceased, including the newest group of counselors, are stuck on the haunted property.
A number of main characters met their gruesome deaths in AHS: 1984 episode 5, "Red Dawn". Xavier took out his rage by killing Mr. Jingles, thinking that his potential career as an actor was overdue to his charred face. Margaret then celebrated with Xavier by lurching a knife through his gut. The sadistic camp director also took Chet out on a moonlit boat ride before ending his life with the help of a heavy anchor and the lake. Montana spent the episode trying to avenge her brother's death by killing who she felt was ultimately responsible, Brooke. After an equally matched beatdown, Brooke got the best of her opponent and plunged a knife (multiple times) into Montana's chest right in front of a bus full of young campers.
Margaret effectively pinned the murders on Brooke but the latest massacre wasn't the big twist for AHS: 1984. The surprising aspect was that Camp Redwood is some sort of purgatory for many of the recently deceased counselors. Before fending off Montana's attack, Brooke reunited with Ray and the two had a romantic romp before she realized he was a ghost. Ray was later taken away by ambulance but when the vehicle crossed over the camp's boundaries, he was transported back to the grounds. He was then met by Jonas, a fellow ghost trapped at the camp. Montana and Xavier were also revealed to be stuck in purgatory and it seems to be a result of their past sins prior to their deaths. At this point, Margaret looks to be the one responsible for the ghosts being trapped on the property considering her overwhelming need to control the sinners of the world.
This isn't the first time that a property has trapped the souls of the dead in American Horror Story. Season 1's Murder House and season 5's Hotel Cortez dealt with similar situations. Margaret, however, may have added a new level to the context of trapped ghosts in the series. While talking to Chet before she carried out his murder, she urged him to make peace with God as if she was giving him a chance to come clean with his sins. Those who are now stuck in purgatory have quite the rap sheet when it comes to sins. Montana hired a serial killer to target Brooke and tried to kill the innocent girl herself. Ray covered up the death of the college student after a hazing incident. Then there was Jonas who felt as if he sinned by not helping his fellow counselors in 1970.
Margaret continuously shares her need to cleanse the world by pushing her colleagues away from sin. It's more than just a coincidence that the biggest sinners are now stuck in purgatory, which happens to be a property owned by Margaret. Maybe she never intends to open the camp but instead wants to trap young sinners at Camp Redwood as a way to cleanse their souls. If they come to terms with their past and accept their regrets, maybe they can move on from purgatory. Montana and Xavier embracing their new situation with no consequences might throw a wrench in that plan.
Mr. Jingles was brought back from the dead by Richard Ramirez (aka the Night Stalker) but there was a catch. In order to come back, Mr. Jingles had to swear to Satan which he later agreed to. The duo was then seen stealing a police car before embarking on a road trip to Los Angeles. Richard's connection to Satan could explain his and Mr. Jingles' ability to leave the property despite the fact they both met their ends. With a series like American Horror Story that relies on supernatural, witches, and higher powers, anything is possible.