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Celebrity death hoaxes can be started surprising easily.

Here lies Miley Cyrus (jk). 
Here lies Miley Cyrus (jk). 
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Basically, all you have to do is start a "RIP (CELEBRITY)" Facebook page, and the Internet will do the rest. If you're lucky, a publication will falsely report on it (as is this case with Variety and Terry Gilliam), and it'll turn into an even bigger hoax. Here are a bunch of examples of other times it has happened.

1. Paul McCartney

Paul ain't dead, mate.
Paul ain't dead, mate.