To dream of madness or seeing a person who has gone mad may represent feelings about yourself or others having lost their senses to an obsession. Having “gone mad” crazy in love for someone to point of causing problems. Being emotionally incapable of getting your mind off something or someone. Unconventional behavior.
Negatively, it may reflect a tendency to totally embarrass yourself being obsessed with something. Humiliating yourself being too in love with someone. Feelings about yourself or someone else having behaved in an inappropriate manner.
Example: A woman dreamed of seeing a mad man chasing after woman. In waking life she had rejected a marriage proposal from her boyfriend who continued to pursue her aggressively.