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This is one of the more quaint theories and one that encourages me to cling to my shattered innocence after five seasons of this show. Reddit user SpaceCampDropOut suggests that all the AHS characters are merely good friends sitting around a campfire telling stories meant to spook the others. He posts: "Each person is a new story teller trying to out scare the next person. And each person uses the campers as characters in their stories which is why we keep seeing returning actors to the show."
Although this satisfies the Girl Scout in most of us, it's also a pretty disturbing thought to imagine your friends telling stories about your extremely violent murder.