A member of her crew blew her up at Mahone Bay, Nova Scotia during the War of 1812 after a series of British warships chased her and after HMS Hogue trapped her.

The Americans used hit-and-run tactics to capture prizes, generally engaging Royal Navy vessels only under favorable circumstances.

While this was occurring, the crew of Young Teazer boarded a vessel off La Have but then released her, as she was in ballast and not worth taking.

On 17 June 1813, Valiant was in company with Acasta when they came upon HMS Wasp in pursuit of the American armed merchant brig Porcupine off Cape Sable.

[7] A few days later, the frigate HMS Orpheus chased Young Teazer into Lunenburg, Nova Scotia but then lost her near Mahone Bay due to light winds.

[13] The hull of Young Teazer was gutted but still partially afloat, surrounded by floating bodies and wreckage, including her alligator figurehead and several Quaker guns (fake wooden cannons).

However Young Teazer's Ghost failed to capture any ships and was soon recaptured by the British and her name of Liverpool Packet was restored.

The folklore states that a fiery glow or a flaming ship regularly appears on Mahone Bay near the site of the explosion, often near the 27 June anniversary.

[15] Folklorist Helen Creighton documented numerous versions of the story in her classic folklore book Bluenose Ghosts, although she noted that many sightings might be optical illusions during full moons.

[16] The gruesome end of the schooner and the many ghost stories have made Young Teazer into a well known mythical figure in Nova Scotia.