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Karen Elson – The Ghost Who Walks Lyrics 15 years ago
I agree that it's metaphorical.
I think it's about a woman trusting a man so much that she'll make herself completely vulnerable (eg. going to a lake, where there aren't any other people).
The line "It was an ordinary night in June" gives me the idea that (1.) her making herself vulnerable was a regular occurrence, and (2.) that she really wasn't expecting what happened next.
The two of them lying in the grass, him gently kissing her cheek, is such a romantic gesture. She felt at ease and safe with him. That's why what he did next caught her so off guard.
"His eyes never once looked cruel" suggests that she never thought that he was capable of hurting her so much.
He "killed" her by breaking her heart.
The ghost metaphor refers to how decisions can sometimes haunt you. She haunts him because she wants him to see what he did to her, every day.

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