You do this by first drawing multiple layers of solid colour(s) on top of each other. Once you think your image is complete move the Fade slider on a little way and off again - very quickly. Repeat this action several times - the image gets progressively more 'ghostly' until it disappears altogether. If you take a photo each time you fade the drawing you can make a stop frame animation of the image disappearing (and if you reverse the order of the photos in the animation the original drawing miraculously reappears!)
Here is a photo from the Chink Chank that shows the 'Ghost' effect.