Factual error: The cars that bring the Americans to the airplane carry German licence plates, nearly impossible in Russia. Also the starting code on the plate (CS) doesn't match an existing city or region. (01:18:50)
Factual error: When they are in Costco there is music playing in the store. Costco does not play music in their stores.
Factual error: When Han is shooting at the gang with the Gatling gun, and we see the holes, they are all completely circular, even though the projectiles should have hit the surface at an angle. The holes in the cars etc. to the far right should have been oblong.
Chosen answer: Insane in the sense that he wasn't completely mentally capable? Yes. Insane in that he wanted to blow them up? No. He was heavily medicated while in care and so his ramblings and confusion are supposed to be perceived as genuine. Once he starts commenting that he is beginning to remember his past, we then assume that he realizes what his original intentions were and somehow manages to contact the other agency.
But Bailey states before he kills Katja that he was responsible for leaking the post online that Marvin saw which started the whole thing. He said he took a guard's phone to do it. I believe he was very aware and was just "playing" everyone.