Embrace in flat-topped mountain? Crazy! (7)

I believe the answer is:

meshuga

I'm a little stuck... Click here to teach me more about this clue!

'crazy' is the definition.
Both the definition and answer are adjectives.
Maybe you can see a link between them that I don't see?

'embrace in flat-topped mountain?' is the wordplay.
'embrace' becomes 'hug' (synonyms).
'in' means one lot of letters goes inside another.
'flat-topped mountain?' becomes 'mesa' (I've seen this before).
'hug' going into 'mesa' is 'MESHUGA'.

Can you help me to learn more?

I've seen this clue in the Sydney Morning Herald.

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