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This small nucleus contains almost half of all the brain neurons that use norepinephrine as a neurotransmitter. The locus coeruleus also projects its axons to those parts of the brain that may be associated with panic disorders (the amygdala, hippocampus, septum, cortex, brainstem, reticular formation, etc). Stimulating an animal's locus coeruleus, like stimulating its amygdala, produces anxiety behaviours.
How Anxiety Can Create Hallucinations. Intense anxiety can cause not only fear, but symptoms that create further fear. In many ways, intense anxiety can cause the feeling of going crazy-as though you are losing touch with reality. Sometimes this is nothing more than a feeling or thought.