What's the best way to deal with a manager/boss who is a total nutcase?

I quit a job I really liked because the person promoted to the position of manager was complete nutcase, and she made work a living hell....

She gave vague instructions, and often directives that were impossible to carry out- and would fire people for no reason at all...One day in the elevator she fired a clerk becasue he made eye contact...She issued a memo barring staff members from associating outside of work, beacuse she was convinced we were merting up to plot against her.
She fired 4 couples at the store that were in long term relationships. Two of them sued and eventually won.

She had worked down in recieving by herself for years, because previous management knew she couldn't work with people- But new management decided that due to the fact she had beem here for years, they'd make her department mamanger. Big mistake- this woman who never spoke to anyonme, who responded to hellos with suilent sneers became violenet tempered person with a napoleonic complex.....It didn't take long to see that she was mentally unstable-

The ONLY way she could communicate with other human beings with through hiostility, and as far as anyone could tell, this woman had no friends- after work, she headed straight to her apt where she was a recluse on her days off......

One day she locked herslf in the office and was heard screaming and breaking things- we thought someone was in there with her, but when the door was opened, she was sitting in the corner arguing with an empty room, rocking back and forth....2 people quit that day.

4 staff members went above her head to tell the higher ups she was mentally unstable, unsuitable for her job, and very abusive to the staff- She found out and fired those who complained on the spot.....

I finally caught up with a member of higher managerment- he admitted the promotioon was a mistake- but it was clear the dept head was mentally ill- but to fire her because iof her mentally ill would be discrimination of a handiacapped person- so they did nothing. They didn't want to get sued.
Next week 10 members of the departtment quit......
I since dioscovered my psycho x boss is in a hospital for good- somehow she's been committed-

If you have/had a boss that was clearly insane- would/did you quit? Would you complain?

Mental illness is no excuse for treating staff like sh*t, I had zero sympathy for her insanity in light of the hell she put the staff through.....I hope she spends her years in a padded cell...

Yes, employees have no other options but to put up with it, talk with a higher level management person about it, or quit. It really was the fault of HER bosses to not notice this behavior before it got so out of hand.

It's over now. Sorry you had to go through that. It's highly unlikely that you will experience a boss as insane (or mentally ill) as that again.