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With Borderline Personality Disorder, "Borderline" comes from the idea that the person is in between a psychotic state and normal functioning. It's an older term that was meant to convey the idea that a person is too sane to be considered crazy and too crazy to be considered sane. They may have toxic personal relationships and difficulty relating to others, but they are not having hallucinations or delusions on a grander scale that would identify them as schizophrenic.
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