This is a fun idea that takes a little more supervision. The basic idea is the same as doing any other tie-dye project except that you will want to use colors that are orange, black and blood red. Here is a link that gives the basic instructions.
Remember that teens are getting to the point with Halloween that they want to be with friends and doing things like going to fun zones that have spook alleys. Therefore, it is going to be most successful if your party has scary crafts that get the teens into their creativity. You can try a few cute crafts; however keep it open to diversity.
These examples are some great ideas for crafts at your teen’Halloween party. However, make it something at their level. It is unlikely they would want to make clay ghosts with wiggly eyeballs.