Am I going crazy?! or is this what happens from severe anxiety??!!?

It is all anxiety and panic disorder. Depersonalization is a major symptom of anxiety. The thing is, people with anxiety disorders always seem to think it must be something else because anxiety as the cause seems too simple. I've read sooo many things on smoking about people that say this causes them problems with anxiety and depersonalization. If you really don't want to make your anxiety worse, I would suggest not smoking. It sucks, since "normal" people can with no issues, but it's a small price to pay considering the after affects it causes. If you really feel like you are lost and can't deal with it you may try going on an SSRI or anti-depressant (they also work well for anxiety). It will help balance out your serotonin and make you start to feel like yourself again. However, you need to take this all as a lesson. Let it make you a stronger person. I've been going through anxiety for so long and I've decided on becoming a psychologist and teaching cognitive behavorial therapy just so that no one ever has to suffer what I have from this. Anxiety and depression are so common and so painful. I'm so sorry you are going through this too.