When Pinkie Pie breaks into the Mentally Unstable Wing of Ponyville Hospital, she finds out that everything is not what it seems. She is thrown into the Wing with the others, Screw Loose, Mind Twist, Screwball, Derpy, and Luna herself. Pinkie begins to loose faith, for a month of nothing but torture and padded rooms can do a lot to somepony.
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Also you can read the prequels:
Mind Twist: The First of The Insane
Screw Loose and Screwball: The 2nd and 3rd of The Insane