A 'better' alternative to using the word 'crazy' or 'insane' to someone. Or just a fun way to call someone crazy. Also, 'mentally jolly' can be used. From the Family Guy episode 'The Fat Guy Strangler'.
"Dr, is my brother really insane?"
"Mrs Griffin, we don't use the word 'insane', we prefer the term 'mentally hilarious'"
12 step recovery jargon referring to someone new who talks about how great life is, now that they'resober. Usually meaning that the person is out of touch with reality.
The new guy seems pretty happy for a dude who has no job, no money and no family. He must be on a pink cloud.