All these terms are used in a figurative and ironic way

Ne ho abbastanza! Me ne vado da questo manicomio

I had enough! I want out of this nuthouse

When I went for the first time behind the stage of an opera before the premiere, I thought it was a zoo in there!

Quando per la prima volta sono andato dietro le quinte di un'opera subito prima della prima, ho pensato che fosse una vera gabbia di matti

Theresa's house is like a loony bin with her 8 kids, 5 cats, 3 dogs and 2 turtles

La casa di Teresa con 8 bambini, 5 gatti, 3 cani e 2 tartarughe che girano per casa, è una vera gabbia di matti

Loony is an abbreviation of "lunatic" from Latin LUNA, which means moon, as it was long believed that madness was related to the phases of the moon