The Smiley Ghost is one of the ghosts controlled by Michael Draverhaven.
Haunting a Krazy's, the Smiley Ghost was confronted by the Ghostbusters. It attacked the Ghostbusters, only to be captured by them. After the capture, Egon noticed that the ghost was able to think strategically, despite being a lower class apparition. Along with some other ghosts, it was later learned that they were being controlled by Michael Draverhaven who Egon, Ray and Peter knew in graduate school. Michael was merely using ghosts like Smiley to observe the Ghostbusters' tactics and weaknesses.