WMG for Scared Shrekless. Potential unmarked spoilers ahead.
The "Bride of Gingy" story DID actually happen and Gingy DID die. He was just resurrected from death because he can be rebaked.
Namely, Gingy did get torn to pieces by the horde of Sugar zombies, and potentially did get eaten by them in a twisted attempt to be "Together Forever" with him. It's possible that later on the Muffin Man returned, and upon seeing the horde of gingerbread zombies and with Gingy being suspiciously missing, would have put two and two together and destroyed the horde (given how slowly they moved and the fact that they only killed Gingy because they cornered him in his house on all sides, it probably wasn't that hard given the size difference), before finding a way to resurrect him. While the end of his story (being eaten) is used primarily to imply that the story is fake, since he's clearly still alive at the end of the story and seems to remember everything just fine, the one thing to consider especially given the presented elements of the story is that gingerbread people can be essentially "resurrected" so long as some part of them remains to be mixed into a new batch of batter and rebaked, as is shown with the Sugar zombies. As such, given the Muffin Man likes Gingy and possibly finding parts of him that hadn't been consumed by the zombies (or even just having his recipe that allowed him to exist in the first place), was able to resurrect him by rebaking the pieces into fresh cookie batter.
- Alternatively, Gingy didn't get eaten, but only said that for the sake of making his story more dramatic at the end, or he's just potentially repressing the true nature of his death because it's too horrifying to remember or use, even in a scary story.
