Is it possible that I'm hallucinating?

I don't think you are hallucinating..I think this is social anxiety disorder..I have this and I do the same thing...When I was in school I could never get up infront of the cl and speak b/c I felt that what I had to say everyone would think that I was stupid and make fun of me. So I would always have an anxiety attack. Then that just made the situtation and how I felt a billion times worse. And then I was humiliated to show my face the next day a school, because I felt that everyone would be talking about me. I was just uncomfortable in social places..Of course there are different degrees of this disorder. You definitely need to consult a physician are a psychatrist. I don't think you are crazy..It's just a chemical embalance that can be cured simply with medication. I haven't felt like that since I have been on meds and that's probably been 8 years..Anytime I stop taking the meds those feelings come right back. Hope this helped you out a bit.