Lavender Town is a village that is not real. It can be found in the Pokemon games and it is specifically in the Pokemon Red and Blue games. It appears scary because it is a haunted town. It also appears as a graveyard in a Japanese style. The rumor about the Lavender Town is that a hundred or so children killed themselves as a result of the creepy music.
It is the creepy music that caused the Lavender Town Syndrome. With the syndrome came the reason the children killed themselves. A Pokemon ghost lives there and as a character you may encounter it if you go into Lavender Town. In the Lavender Town is the Pokemon Tower which was really another tower in another Pokemon game.
There was a time when children ages 7-12 killed themselves in Japan because of playing Pokemon Red and Green. The urge to kill themselves usually happens upon reaching Lavender Town wherein the frequency of music was extremely high. Take note that the music cannot be heard by adults anymore as their ears are not as sensitive as the ears of children and young adults.
After the mass hysteria, the music was fixed and there were no more reported incidents after that. Some people say that the story is exaggerated but there are also some who say that every word about what has occurred is true. Those who did not kill themselves also experienced some discomfort.