What does basket case mean?

basket case in AZ Dictionary

(n) Slang One that is in an entirely hopeless or worthless problem: "He instantly becomes a psychological basket case, embittered to the point of craziness” ( Nyc). "After World War I, as soon as the Hapsburg empire was split-up, small Austria felt a basket situation” ( Paul A. Samuelson).
(n) Offensive Slang an individual, especially a soldier, that has had all limbs amputated.
(n) One made powerless or ineffective, as by nerves, panic or anxiety.

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