Though this word has its origins in psychology, I would like to focus on the term as used in fandom. In fandom, it usually refers to the hyperintense emotional scenarios and outbursts that frequently occur at conventions. Usually psychodramas are linked to relationships, mostly romantic in my experience but sometimes simply personal in nature.

The relationship between psychodrama and fandom is unclear but quite evident in my experience--as I've walked around a convention hotel between midnight & 2 AM, I've frequently seen many tearful females (and less often males) being comforted by someone. It occurs often enough to be humorous, except when you find yourself weeping in the corridor late at night or comforting a soon-to-be ex-girlfriend as her eyes get redder and redder.