Is there a term for the situation when we falter about making a suggestion or flinch from giving an answer or hesitating to take an action fearing ridicule of others or their rejection?
Is there a sort of a phobia for it, maybe?
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Atychiphobia aka Kakarrhaphiophobia
A person afflicted with atychiphobia considers the possibility of failure so intense that they choose not to take the risk. Often this person will subconsciously undermine their own efforts so that they no longer have to continue to try. Because effort is proportionate to the achievement of personal goals and fulfillment, this unwillingness to try that arises from the perceived inequality between the possibilities of success and failure holds the atychiphobic back from a life of meaning and the realization of potential.
I can also add:
Gelotophobia: Fear of being ridiculed/laughed at.