I wouldn't call it a psychosis, because in this case people are right. If you look at the numbers [1] it went 10x in 10 days in Italy. Despite the counter measures. Now it's only 7.3k if the efficiency of the counter measures don't increase, it will be 73k in 10 days, 730k in 20 and probably 7M in a month. With 20% requiring hospitalization. Which simply cannot be managed at this scale. (Probably not even at the 730k mark.)
[1] https://www.worldometers.info/coronavirus/country/italy/