Tonight there is no moon at all, I know that this bodes ill. This morning when I went out cautiously, Mr. Chao had a strange look in his eyes, as if he were afraid of me, as if he wanted to murder me. There were seven or eight others, who discussed me in a whisper. And they were afraid of my seeing them. All the people I passed were like that. The fiercest among them grinned at me; whereupon I shivered from head to foot, knowing that their preparations were complete.
This builds up on the idea that I started from the first line, of the author being quite paranoid, and mentally ill. The author mentions that the Mr. Chao had a look in his eyes as if he were afraid of him, then quickly changes to the idea that he wanted to murder him. Being afraid and wanting to kill someone are two quite different emotions/looks, giving evidence of a possible mental illness. Moreover, the author is very paranoid as he believes people are talking about him. Overall, this excerpt perfectly portrays the "crazy person" persona that the diary gives off.