Whatever an "inflated consciousness" is. I suppose he's trying to talk about a highly narcissistic personality. However, in that case you're not talking about a person who is lost in self-hypnosis. Instead, you're talking about someone whose sense of self-worth is so unstable that it constantly needs re-affirmation from others, often via bad behavior that denigrates other people (to show off).
This is locus theory in psychology. The idea is that a highly narcissistic personality locates the definition of self-worth in others' appraisals (externally) rather than having value come from within. It seems a bit dubious but it does tend to explain why some people feel the need to behave badly for attention quite often. All people are social and need affirmation, though.