Imagined our silly madcap… (8)

I believe the answer is:

illusory

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'madcap' is the definition.
Both the definition and answer are adjectives. Maybe you can see an association between them that I can't see?

'imagined our silly' is the wordplay.
'imagined' indicates anagramming the letters (a re-imagining of the letters).
'our'+'silly'='oursilly'
'oursilly' is an anagram of 'ILLUSORY'.

Can you help me to learn more?

(Other definitions for illusory that I've seen before include "Unreal, fanciful" , "Not real, imagined" , "Deceptive" , "dreamed up" , "false" .)

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

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