It would appear that this location was due to the actions of a murderous practitioner of witchcraft and/or the worship of a dark Pagan deity. Given the violent nature of the scene and the presence of a horned animal skull taking the place of the human corpse's head, it is possible that this ritual could have also been a representation of Satan.
The player can take the Pagan Skull Mask off of the corpse and wear it as an interactive item.
If the player takes the skull and then comes back to the site at a later date, a new rotted corpse painted with bizarre symbols will be at the site, lying in a pool of blood.
This might be connected to Edmund Lowry Jr., however this is not confirmed. Lowry's victims were executed in a similar way.