Two opposing churches got in a turf war in 1884. Nobody
necessarily went crazy, but there was a shoot out at a church in
Utah on august 10, 1884.
EDIT: Actually, that happened near Cane Creek, Tennessee, not in
Utah. A mob led by a Protestant minister named David Hinson wore
masks and attacked the home of William James Condor where the
Mormons were meeting. He felt that Mormonism was a threat to his
own flock. It was known among Latter-day Saints as the Cane Creek
Massacre and to local inhabitants as Tennessee's Mormon
Massacre.
I've been trying to find anything about the Mormons in Blessing,
Utah going crazy, and this is the only reference I can find. It
doesn't really fit. I think the reference in Tommyknockers is
purely fictional.
Related Q&A:
What happened in blessing Utah in 1884?-Oh, well, you know, in 1884 in Blessing, Utah, there were quite a few significant things going on. For starters, there was an expansion of the local mining industry, which brought in more workers and new businesses. Also, a big community event was held to celebrate the town's growth and prosperity. And, rumor has it that a famous traveler passed through and shared some amazing stories that got everyone talking. It was a year of change and excitement for the folks in Blessing!