I think this is actually a reference to how most people will become unhinged when faced with proof of ET visitation. Society will collapse because the public is just unable to cope with the idea of a big neighborhood in the Cosmos. The “ET are demons” crowd will go catatonic or perhaps violent.
If such disclosure were to come to pass, I suspect that most reactions, at least in the Western civilization will be more like “that’s interesting,” unless, of course, if the government pushes PANIC!