In 1955, Morris K. Jessup received letters from a Carlos Allende claiming the USS Eldridge was rendered invisible and teleported in October 1943, with crewmen fused into bulkheads. The Navy investigated Jessup's annotated book (the Varo edition, 1956). Eldridge's logs place it elsewhere, and researcher Robert Goerman identified Allende as Carl Allen, a drifter with a history of fabulism.
Retellings keep the horror: men reappearing inside steel, men fading in and out of visibility for years in Norfolk bars, the whole crew institutionalized. Each generation of the story adds casualties and subtracts sources.
The charitable kernel: the Navy really did run degaussing programs to make ships invisible to magnetic mines, and real experimental work happened in Philadelphia harbor. A garbled account of demagnetizing a hull could grow, in the right mind, into dematerializing one.
How did a story with a documented hoaxer become the load-bearing wall of all teleportation lore?