Hyakumonogatari Kaidankai also known as the gathering of 100 weird tales. It was a Japanese game played during the Edo period, late at night in which a group of people would gather to tell bizarre but often frightening tales. 100 candles were lit at the start of the game. When an individual was done narrating their kaidan or weird tale, they would reach over and extinguish one of the candles. Each time a tale was told, a candle would be put out until there was only 1 left. By the time only 1 candle remained, the room would be submerged in enough darkness to guarantee paranoia and tension. When the last candle was doused, something terrifying was supposed to happen or one of the guests was rumored to be revealed as a ghost or other supernatural entity.
There is no known concrete reason for the existence of such a game but there are 2 underlying theories.
#1: There are some that claim the origin is from a Buddhist ritual called 100 Buddhist Stories or Hyakuza Hodan. The ritual consisted in 100 Buddhist stories told over a period of 100 days and a miraculous thing was believed to happen afterwards.
#2: The second theory of the game of the gathering of 100 weird tales was supposed to have originated as a form of courage test played amongst the samurai. Along the lines of ‘ the last man standing’ because when the last candle was extinguished, only a few would be brave enough to see what awaited in the dark. ( This version of the game can be encountered in Ogita Ansei‘s Kaidanshū Tonoigusa.
— Sourced from Yurei: The Japanese Ghost