Answer: Betsy Bug is another term for bedbug,” which you probably know are tiny, biting insects that lurk in linens and around baseboards. They leave nasty bites and can be extremely hard to get rid of. However, experts seem to think they are not crazy bugs, but rather crafty. Folks used to surround their bedposts with pots of water in a vain attempt to keep the bugs at bay. However, the bugs just crawled to the ceilings and dropped into the bedclothes from their. Perhaps this seemingly crazy-looking antic is how the bug got associated with crazy behavior in humans.