still doesn't say why he's mad, and i have already beaten the quest and found Konahrik
um...
Due to voices in his head? Pretty sure I read that within 10 seconds of clicking the second link.
Yes, that. Unless the OP is confusing "Otar, you mad?" with "Otar, you crazy!"
http://www.uesp.net/wiki/Skyrim:The_Secrets_of_Ragnvald
Here's a book that doesn't appear in-game but explains more of Otar's madness.
I saw that at one of the links I posted. And just because of that, I'm including it in the player house mod I'm working on right now.