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I think all you need to do is hit the ghost outside of the quest with another lantern...Also I've asked around and most people still have theirs? I know the witch quest reset and I ended up doing that again to see if there was another prize or something..
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Managed to get the lantern, still not 100% sure what was up. Hitting the ghost hadn't been doing anything until I left the area, restarted my game and logged in outside of deadwood then entered again. I'm guessing that had something to do with it because all 3 times I tried it I had originally logged in from inside that area.
Also I asked and made sure they were talking about the right lantern and yeah it's the new one. I'll tell them to try get in again to see if they have to redo the quest.