Perhaps a simpler translation would be "to philosophize oneself away". There is nothing specifically about the madhouse here. The word breaks down as follows: the root is -mudr-, which means "wise"; then you have the verbal imperfective suffix -ova- and the infinitive ending -t. So you've got: mudrovat, which means "to be (or, in fact, to act or talk as if you were) wise (or a philosopher)"; hence, "to philosophize". The interesting part comes when you add the prefix u-, which means "away", in the sense of movement into the far distance, in combination with the reflexive clitic se. The resulting image is that of one philosophizing on and on to the point where one gets carried away and loses touch with whatever the main issue was, or indeed, with reality.