In the Inquisitor's Handbook, there's a background package called "Mara Landing Massacre" survivor or something.
Amongst many things (like giving the character +1 fate point, 1d10 Insanity points and 1d5 corruption points), it states very clearly that the character is Unhinged.
By Unhinged, are the writers referring to the second / middle degree of a disorder?
This degree of madness is reached once a PC has collected 60 insanity points.
Is this what they, the writers, are referring to?
I can't imagine that a newly created character has 60 insanity points (rather, they begin with 1d10). It must be simple.
Or does it indicate that some other penalty?
An extra Fate point is a BIG DEAL compared to a measly 1d10 insanity and 1d5 corruption points. A character can get that many in one story session.