This paper presents the Knowledge-Induced Mental Instability Hypothesis (KIMI), which posits that excessive knowledge acquisition can lead to psychological destabilization in vulnerable individuals. While knowledge is typically associated with positive mental health outcomes, KIMI suggests that there exists a threshold of knowledge—defined by its volume, complexity, or existential depth—beyond which mental health may deteriorate. The methodology integrates cognitive load theory, existential psychology, and information processing models to elucidate how certain types of knowledge can induce mental instability. The findings categorize destabilizing knowledge into four subtypes: quantitative overload, contradictory knowledge, existential knowledge, and forbidden/taboo knowledge. Each subtype is linked to specific psychological symptoms, indicating that individual differences in cognitive processing capacity and knowledge exposure intensity can predict psychological stability. KIMI offers a novel theoretical framework that addresses contemporary mental health challenges in the information age and proposes that epistemic trauma should be recognized as a distinct clinical category requiring targeted therapeutic approaches. The study concludes with implications for future empirical research, emphasizing the need to explore the psychological impacts of knowledge in an increasingly complex information landscape.