She was 48 and had two sons and one granddaughter.
Her death follows the recent passing of Lance Cade, 29, in a horrid month for the wrestling business.
Luna - who also worked for ECW and WCW - had struggled with demons and depression. The WWE had paid for her to go to rehab on more than one occasion.
The federation confirmed the news on their website, posting: "World Wrestling Entertainment has been made aware of the passing of Gertrude (Luna) Vachon. WWE extends its deepest condolences to the Vachon family.
"Ms Vachon was under contract with WWE at various times from 1993 through 2000, and performed under the name 'Luna' Vachon. She last performed for WWE in early 2000."
The story is being carried by a number of prominent outlets in the States, including celebrity gossip website TMZ.
Meanwhile tributes have been pouring in from Luna's peers on Twitter.
Tommy Dreamer said: "Luna was the first Queen of Extreme. My first manager. Luna passed away on the night of two moons. Pretty unique just like her. Strong woman."
WWE star Goldust remembered her comedic side, posting: "Luna was as freaky as me...maybe even more...love her and will miss her...hopefully she's in a better place." (thesun)
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