A Gloom/Body Thief clarification question

Hi! I've searched the forums and web for some insight on the "Body Thief" card in Gloom, and have found a lot of contradictory things - so I thought I'd ask:

The text reads "Choose one of your living characters and any one dead character. Both are removed from play and provide no Pathos Points."

When we played it, we had two different interpretations happen at the table. Those two interpretations were:

  1. When you play it, the "Choose one of your living characters" part refers to the person PLAYING the card. (I play it, sacrifice one of my living characters, and eliminate someone else's dead character.) It can't be played on someone else - the person who plays it is specifically sacrificing one of their living characters to eliminate someone else's dead character. (Therefore, in theory, eliminating an opponent's dead character that was worth a lot of negative pathos points).

  2. The card CAN be played on any player, so the "Choose one of your living characters" part refers to the victim of the card: So if I play the card and pick Joe Schmoe as my victim, Joe Schmoe must remove one of his living characters and one of his dead characters from the game.

The first option is an interesting version, because it means you get to eliminate someone's already dead big-point character, but also must sacrifice one of your own. The second makes the card really strong, because it means you can knock your opponent down to only having 3 characters in their family instead of 5.

To end the fighting in my house:

Really appreciate any help!

An event card (red text) is talking to you. You don't play it on someone so much as you just play it. You remove one of your living characters and then any dead character.
So, #1.

Deathbird, thank you! I really appreciate the help!

I have a question kinda related to this. We were playing the other night and encountered a problem concerning an event that said you can cancel a untimely death card as a response. However, when the card was played, it was played after another player had killed off their last family member. The rules say that when the final death is created, the game is over. However the card cancels out the death. Please end our dispute and set things straight!

I think in that instance you play the instant event to cancel the death before the death occurs, thus the conditions for ending the game are never met. Even though the death card is played, the death doesn't happen because it's interrupted.

Correct. Because the death is interrupted, the character never actually dies and thus the game doesn't end.