I've had two deaths caused by Hysteria in the past two months. In both situations, the Sim that died was playing chess when another Sim with the Great Storyteller reward trait autonomously told a funny story. It caused the Sim to become Hysterical and die. It happened fast both times. I saw the Sim become Hysterical, stand up, clutching his chest, and then die. In both cases, the Sim that died was a visitor to the lot. In both cases, the chess tables were outside and there were no aura items around that boosted any mood.
Scenario 1 - The Sim that told the story was not successful when pleading with Grim to spare the life of his friend. He only had Level 2 Charisma which might have affected the outcome. He's now working on his Charisma skill as well as the Cooking and Gourmet cooking skills so he can make Ambrosia. He also became a Spellcaster so he can learn how to resurrect his dead buddy. Both methods are taking a long time though so his friend remains a pretty happy ghost for now. His ghost buddy was added to the household so they're both working on the Grilled Cheese aspiration. The ghost also became a Spellcaster. He's working on his Cooking skills too - just in case. This turned out to be a very interesting game. This incident occurred in a Save File that I had downloaded and was testing.
Scenario 2 - The rascal that told the story was successful in pleading with Grim so his friend was spared. He and his friend both got to meet Grim so they're currently working on the Grilled Cheese aspiration. Both Sims had level 6 Charisma. Both Sims got a big buff after that - one for being successful and the other for being brought back to life.
I have mirrors near chess tables now. I have Sims splice plants to make death flowers. Almost everyone has at least one in their inventory for emergency purposes. I'm not inclined to get anyone the Great Storyteller trait anymore either.
My advice - play chess, chat, tell jokes, and then have someone tell a "great story." I haven't done this to kill a Sim on purpose though. Both of mine were accidents. I think the same thing can happen when you take Sims to a restaurant. Someone always tells a joke or two which can lead to Hysteria. Come to think of it, I did have that happen in a game several years ago. I should blow the dust off that game and see if he can be played as a ghost.