1. Dank "discovered" pot, got hooked, and to his great misfortune triggered a latent psychosis. It would have appeared eventually regardless.
2. Next he discovered LSD, self-medicated with it, and stumbled around through a process of self-discovery until he could fabricate a new theory of reality consistent with his psychotic state. He now believes he understands the "real" truth and everyone is blinded by greed and ignorance.
3. Now he's bouncing between delusions of grandeur (I will put together a massive music festival with no money, we can all live forever) and extreme paranoia (someone paid those kids to assassinate me).
4. In the next few weeks he's likely to disappear and sink into horrible depths of depression. Hopefully his family will be able to get him to a doctor before he hurts himself or someone else.
conclusions:
1. You can't use logic to convince a psychotic to stop being psychotic. He needs sympathy, and ultimately therapy and medication.
2. His behavior has shown strong indication of mental problems from the very beginning. Anyone loaning money to him should have been on notice.
Unless he's acting a part and is faking it all for his amusement or perhaps to get sympathy while he absconds with funds. I personally think he was hoping for a much bigger cash out but most were wary to loan him very much so he took what he could get.
+googolgoogol