Role Madness refers to a type of game where most or all of the players have power roles; that is, there are few to no true Vanilla Townies. Because there are so many power roles, the veracity or effectiveness of Night Actions is very difficult to determine without knowledge of what the other players did. Role Madness games have been known to include unique roles designed by the moderator's whim as well, further increasing the potential for confusion.
Role Madness games are not to be confused with bastard mod games. In the former, the confusion stems from the sheer number of role interactions. In the latter, the confusion comes from the moderator omitting vital details about players' roles (if not lying to them outright).
Because the game hinges so much on players' Night choices and the number of possibilities to account for are so high, balancing a Role Madness game can only be rough at best. When reviewing a power-heavy game like this, the two things that must be checked for are broken combinations (i.e. if everyone claimed, could a group of players use their Night action to dominate the game? If not, could they do it after a certain player dies?) and whether any one faction can become grossly more powerful than the other(s).
The subversion of including a single Vanilla Townie in a Role Madness game has been done many times over, to the point where claiming to be a Vanilla Townie has been considered self-confirming (if not an outright Town-tell).