Lunacy or becoming a Lunatic is the result of the prolonged association to "Little Mal". There are three stages to Lunacy, each stage becomes more difficult to undo and more detrimental to the dreamer.
Stage 1 Edit
The first stage is silent but deadly. There is very little to show that the dreamer has already been infected by this blight. Whether they had a bad day the night before, suffered the loss of a loved one or possession, undergone abuse either as a first occurrence or ongoing. The dreamer will be feeling low regardless of how they act alone or seem to others, this stage is signified by the encounter of Little Mal. The Observers are able to prevent stage one alone.
Stage 2 Edit
The second stage is segregation of friends and associates and extreme paranoia of safety. At this stage it is clear that a dreamer is going through fear or depression and at this stage they need IMMEDIATE assistance. At this stage Little Mal begins to speak to the dreamers and convinces them that their friends are out to get them and they are not to be trusted. They'll believe the only way to be safe is to keep away from them and to achieve great power to preserve themselves. If they are by themselves and do not have friends, then they are convinced that the real world is not worth living in. Stage 2 is the persuasion to achieve God Tier status under the pretense that they will be strong enough/safe enough to continue living as well as to remove anyone who would get in their way or who is perceived to be the cause of grief. Little Mal is able to cause the dreamer to convince themselves either on their own or with the help of their own conjuration that their actions are just, and that it is necessary to survive, this high belief in their own preservation sparks a boost in dream manipulation within them allowing them to access a small amount of the power they can achieve if they pursue God tier status. The Observers may prevent stage two alone, but using another dreamer is far more effective.
Stage 3 Edit
The third stage is the transformation to malice incarnate. At this stage the dreamer has either achieved God tier under Little Mal's will or has killed another dreamer, most likely the one closest to them. If they have achieved God tier they are lost to the will of Little Mal, they will kill everything until their attendants deem them unfit to continue to rule their realms. Revoking a guardian's title while at Stage 3 finalizes their being in a state of evil, leaving them to waste away to time, the most wicked of monsters to exist in the dream world. If a dreamer undergoing stage 3 kills a loved one, either the shock of their actions is enough to release them from Little Mal's grasp or they are convinced that this path is more gratifying than friendship or love and will wish to seek God tier. The Observers are not able to prevent stage three alone and are unlikely to stop it by using another dreamer if any.
Mentality while awake Edit
When a dreamer is going through Lunacy in whatever stage before achieving god tier, they will have cloudier memory of their dream than normal to ensure its success, picking at a dreamer while awake about impeding Lunacy is the MOST effective way to prevent it.
Quotes on Lunacy Edit
"Once you see it. It haunts you. You start to get paranoid. It whispers to you, tells you to do things you may not want to do. Daydream got mixed up with it before... Not a pretty sight let me tell you. ... "
"Try and picture pure evil in a physical form. It targets strong capable dreamers and pricks them when they're at a low point. That prick will crack the person ever so slightly. Until BAM. They become a Lunatic. "
"I'm sure you've heard the term, Lunatic right? ... Okay, well the gist of that is a "thing" that looks like an angel and a devil kind of starts stalking you to bring that side out of you. You know the thing I'm talking about, right? ... Well, that side that it brings out? It's me! ... Yep, I am your lunatic self."