Set up the group in a circle or in pairs.
The starting player says something innocuous, such as “I almost overslept.”
The next player says something, such as “It could’ve been worse. You could’ve been late.”
Then the next, or other, says something worse, such as, “It could’ve been even worse than that. You could’ve been in your underwear.”
And then the next person tries to find something worse than that.
And the game continues until everyone has a chance to contribute (or it gets to be too much).