“I am way past facing reality!” Is a statement of clarity beyond clarity. This statement is a counter slap to someone who thinks that they are trying to alert you to the reality of a situation. It’s another way of saying: “Oh, allow me to retort, MOTHERFUCKER!”.
Jim: "So he broke into her apartment, jumped her, tied her up, and kidnapped her. Oh, he also stole a pet snake."
Tim: "Hm, this story must be completely credible because a random, unnecessary detail was added in. Wait a second... he must've been faking the snake!"