[Nyororin]

There were a lot of huge problems in more recent years with the loop line thing. Way too many people showed up, and they were blocking commuters from getting on the train... Unless they were cute girls. Someone we know was literally pushed from the train.
It really got ridiculous, from what I understand. It is one thing to have a small and fun tradition, but it is another to start kicking normal people off the train, stripping down, breaking things, and just generally creating havoc. It had reached the total havoc point with those riding having an attitude of "you can't touch me, screw anyone not participating"...

The backlash came after a couple years of serious problems caused by the riders. If the ride has disappeared, good riddance in my opinion. There is no need to make reasons for discrimination. *sigh*

ETA;
Back on the original topic...
I will second what Cola said. Most haunted houses and "scary" type attractions disappear with the end of the hot weather. It is seen as a way to have a chill in the hottest months of the year, and is also linked to Obon (festival of the dead) which is in mid-summer. Autumn is not the time for ghosts in Japan.