The most common and most likely answer to this crossword clue is the 10 letter word HOBGOBLINS
I've seen this crossword clue in The Guardian
H
O
B
G
O
B
L
I
N
S
More clues leading to the result HOBGOBLINS
Buddy explains!
The straight part
We know that "spirits" is the straight/definition part of the clue. The straight part is often a synonym or definition, in this case spirits = hobgoblins.The cryptic/wordplay part
In cryptic crossword there's often an wordplay/cryptic part as well.This part involves a more complex hint, such as an anagram, homophone, hidden word, etc.
Sadly, We don't have an explanation for this specific crossword clue yet.
What does HOBGOBLINS mean?
HOBGOBLINS noun- A small, ugly goblin that makes trouble for humans.
- (by extension) A source of dread, fear or apprehension; a bugbear.