Crossword Genius

An ugly Greek woman in suspected madhouse? oh, no! (6)

Ross

I believe the answer is:

medusa

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But I can't explain it at all! Could you help me understand?

(Other definitions for medusa that I've seen before include "Gorgon killed by Perseus - jellyfish" , "One of three sisters with snakes for hair" , "Amused by the mythical gorgon?" , "Amused like Greek Gorgon" , "Gorgon of Greek myth" .)

I've seen this clue in The Hindu.
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