Crazy and terrible situation in which you’ll find Hazel? (8)
I believe the answer is:
nutshell
'in which you'll find hazel?' is the definition.
(as in hazelnuts)
'crazy and terrible situation' is the wordplay.
'crazy' becomes 'nuts' (I've seen this before).
'and' says to put letters next to each other.
'terrible situation' becomes 'hell' (hell can informally mean an ordeal).
'nuts'+'hell'='NUTSHELL'
(Other definitions for nutshell that I've seen before include "'In a ..., in essence (8)'" , "In which the case is put concisely" , "Hard fruit covering" , "Kernel holder" , "Hard kernel covering" .)