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It seems like Lu is experiencing some intense psychological distress, possibly fueled by paranoia and disturbing dreams. Back's reaction reflects his discomfort with Lu's behavior and the unsettling nature of Lu's dream. Richards' suggestion of giving Lu a sleeping pill to help him rest is a temporary solution to alleviate his distress and help him regain some stability. However, addressing the underlying issues causing Lu's paranoia and disturbing dreams may require deeper psychological intervention or support.