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This Article Contains Spoilers - WARNING: This article contains major spoilers. If you do not wish to know vital information on plot / character elements in a story, you may not wish to read beyond this warning: We hold no responsibility for any negative effects these facts may have on your enjoyment of said media should you continue. That is all.
Luther Edward Baxter was a circus clown, who began dating another circus girl named Tracy Greaston. Tracy's friend Roxanne Doogan (real name was Sarah Summers) became jealous that Tracy wasn't spending as much time with her and decided to get rid of Luther/Gurdy, so she told the circus' strong man Ralphio, that Gurdy was raping Tracy. Ralphio then impulsively beat Gurdy senseless without giving him a chance to explain himself. Shortly after this, Gurdy approaches Roxanne and strangles her to death. He then finds Ralphio and stabs him with a bowie knife.
Knowing that he can't stay at the circus after killing two people, a circus dwarf named Drago helps Gurdy sneak out of the circus. Later, a rumor spreads around the circus that Gurdy killed himself, although Tracy knows this isn't true, as she sees Gurdy standing around the circus as the travel from town to town. He is now a notorious serial killer known as the teardrop killer, whose modus operandi is to follow the circus to whatever town they go to, commit an unspeakably brutal massacre in a random location, and leave a teardrop drawn in blood on the wall at the scene of the crime (hence the title).
In the film's opening scene, he is seen committing one of his unspeakably brutal massacres at a halfway house, where almost a dozen residents/employees are killed with a giant meat cleaver. He kidnaps three more to torture/murder later. After this, his spree continues, when a real estate agent named Michael brings two property buyers to look at a warehouse that Gurdy was using as a base, and Gurdy kills all three of them.
Next, he begins to miss his ex-girlfriend Tracy, and goes to the circus to, where he extorts Drago into giving hiM her address. When he goes to visit Tracy, he finds her dead with a girl cleaning up the crime scene. He then humorously chases her around the house, and when he catches her, he kidnaps her and takes her to the warehouse where he seems to have a room already set up for her. When she asks why he hasn't killed her already, he shows her a picture that reveals she is his long lost daughter, Christine Greaston.
Christine seems thrilled that her father is a notorious mass murderer and insists he shows her the ropes about killing people. This opportunity presents itself when seven kids break into the warehouse to party, and they continue their killing spree, by killing all of them.
However, their reign of terror comes to its conclusion when reporters Mark Webb and Jennifer "Jen" Stevenson arrive at the warehouse with Detectives Dunkin and Spaulding. Consequentially, all four of them become trapped in the warehouse. Detective Dunkin dies next when Christine slits his throat with a razor. Next, Christine kidnaps Mark and dresses him up like Gurdy, who arrives and shoots him in the head. They had planned to make it look like he was the real teardrop killer and had killed himself. Jen briefly encounters Gurdy, but escapes, and witnesses him kill Spaulding. As Jennifer runs for the exit, Christine attacks her with a hammer and razor and kills her. Christine murders Gurdy, as she fears some of the murders could be tied to her. She draws a teardrop on the wall, and satisfied that she is the new teardrop killer, leaves to the next location of havoc. As she crosses the street, she is run over by Jennifer, who is revealed to have survived the massacre.