A pious Jew passed away. Subsequently he kept appearing in a dream to his children asking them to convert. They went to Reb Zusha for advice. Reb Zusha said that probably the grave diggers, who were mostly non-Jewish and generally wearing crosses, have dropped a cross while digging the grave, and this is the source of the dreams. They dug up the grave, found the cross and removed it, and the dreams stopped.
There are several problems with this story. First, it is forbidden to dig up a grave in such a case. Second, there is no such Yerushalmi.
The Lubavitcher Rebbe (Igros Kodesh, Volume 11 Page 269) tries to resolve the first problem by suggesting that perhaps the digging was done around the perimeter of the grave, but not the grave itself. However, he asks the writer if he could advise him as to where the Yerushalmi is, (implying that there is no such Yerushalmi).
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