Most people misunderstand the punchline.
Kaufman didn't fake his own death; he faked the faking of his own death. This is where he's brilliant; it’s all in the dedication to the gag. He convinced everyone that he was faking his own death, even though he was actually dying. Very few artists have ever had that kind of control over their audience. He still exerts it to this day, posthumously, with the help of friends and family.
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