How did you judge the distance of a silvery oval in the sky? We're generally pretty bad at estimating distance without sufficient cues (https://www.sciencedirect.com/science/article/pii/0042698979... https://psycnet.apa.org/record/1997-02284-005 https://www.nature.com/articles/35102562). It may have been something smaller and closer than you thought, and so not necessarily making insane movements.
> Either this is psychological and people have some kind of built-in hallucination effect for this specific phenomena in the sky
It doesn't have to be "built-in" - suggestibility could play a big role.