Psycho-magnification is the process by which interpretations of events/thoughts/action get magnified or exaggerated exponentially (till a point at which it defies logic) as the thought passes through different psyche levels.
Process example : Person
1 to
2 : "Mike was stung by a bee"... Person
2 to 3 : "Mike was stung by a giant bee"... Person 3 to 4 : "Mike was stung by a giant man-eating bee and escaped only because
Batman saved him."... Person 4 to 5 : "Mike is a giant man-eating bee and he ate
Batman"