The Happy Birthday House was given to a number of abandoned homes in Bristol, Tennessee and Virginia that have since been torn down, but the gruesome reputation it once had is a convoluted retelling of the 1981 horror movie Happy Birthday To Me believable not because horrific events actually transpired inside, but because it was a “creepy old house”.
Stories of so-called Happy Birthday House in Bristol centered on a girl who slaughtered her family, writing “happy birthday to me” on the wall in her victims’ blood, because she believed they had forgotten her birthday, only to soon discover they had been planning a surprise birthday party for her.
Exhaustive research into local newspapers does not reveal this crime, nor does Bristol historian V. N. “Bud” Phillips include the event in any of his books. Instead, it is apparently based on the movie Happy Birthday To Me, starring Melissa Sue Anderson as Virginia “Ginny” Wainwright and Lawrence Dane as her father. The Wikipedia webpage explains the shocking scene where Ginny seems to have murdered her friends for her birthday party:
Entering a cottage which serves as the Wainwrights' guest quarters, he makes a ghastly discovery. The corpses of all the
murdered Top Ten members are seated around the table, which has been set to look exactly as it did four years ago. The
corpse of Mrs. Wainwright is seated there as well. Then Ginny enters, carrying a large cake and singing "Happy Birthday" to
herself. Already distraught, Mr. Wainwright bursts into tears when his daughter casually admits to committing the murders.
Ginny then slits her father's throat with the same large knife she used to cut the cake. (Wikipedia)
It is clear to see where the inspiration for this local ghost story came from.