You can see the latest version of the Ghost Stories rules here:
http://rprod.com/index.php?page=download-9
With the old rule book I really hated the game and its weird ambiguities and confusions, but the new rules are so much clearer.
So, currently "any three tiles" on any level including initiate means you've lost. (Of course there are the other ways to lose like all Taoists dying or running out of ghosts)
(Also in older versions, initiate players didn't get a bonus black token to start)
http://rprod.com/index.php?page=download-9
With the old rule book I really hated the game and its weird ambiguities and confusions, but the new rules are so much clearer.
So, currently "any three tiles" on any level including initiate means you've lost. (Of course there are the other ways to lose like all Taoists dying or running out of ghosts)
(Also in older versions, initiate players didn't get a bonus black token to start)