Tarot cards...

[Raltze]

I was playing with my friend and started drawing tarots. Drew the Devil => the ghost materialized and gasped in her ear. After that I drew the Death card and INSTANTLY my friend died? We were like as far as possible from the ghost room but the ghost spawned on top of us? Is it supposed to work like that?

[StaticR]

While not hunting the ghost walks around as an invisible being and will start it's hunt from wherever the current location is at, independend of what the ghost's home room is. Since it was right on top of your friend when the ghost event ended it started it's hunt from there and killed her.

The devil card teleports the ghost near the player and starts a ghost event. Even if the ghost doesn't become visible during a ghost event it is physically there, in fact the hiss sound eminates from the ghost's actual location which can sometimes be heard still moving while it is audible.
The death card starts a cursed hunt which only has a 1 second grace period, which is the reason why your friend died almost instantly.