Psychotic Haze deals 1 damage to each creature and each player.
Madness
(If you discard this card, discard it into exile. When you do, cast it for its madness cost or put it into your graveyard.)
A card with madness that's discarded counts as having been discarded even though it's put into exile rather than a graveyard. If it was discarded to pay a cost, that cost is still paid. Abilities that trigger when a card is discarded will still trigger.