If not, where does his power come from? Why does he come to life and start to dance around when they place a hat on his head? It's eerily similar to the scene in "The Exorcist", when Linda Blair's head spins around.
At the very least the story is creepy. If such an event were to occur in reality, it would be very traumatic for children. It would give them nightmares, and cause serious psychological damage that only years of therapy could undo.