> "In psychopathology, psychosis is the inability to distinguish what is or is not real. Examples of psychotic symptoms are delusions, hallucinations, and disorganized or incoherent thoughts or speech."

I think the use of the word here is meant to invoke the vision of someone under heavy delusions or hallucinations, such as (what Hashimoto percieves as) the delusion that shipping more bugs is fine if AI can resolve them faster. To what extent this counts as delusion (and thereby psychosis) would depend on how deeply you believe that this and related opinions are wrong.