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I recently overheard someone referring to another person as being 'Crazy as a coconut'. I hadn't heard this phrase before so later on I started researching. My initial thought was that he had made up himself as I didn't find many results. I did however see this phrase used as lyrics in a song by a band called 'The Avalanches' titled 'Frontier Psychiatrist'. I see someone else had raised question on Answers.com and received an obscene response but hoping someone here might provide a more helpful response as to its origination.

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    Understand that "crazy as a X" is a common expression, with many different objects being used for X. It's often ad-hoc.
    – Hot Licks
    May 10, 2019 at 20:24

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The phrase is “crazy in the coconut”:

Popularized by the Australian electronic music group The Avalanches in their song "Frontier Psychiatrist".

  • Lie down on the couch, what does that mean?

  • You're a nut! You're crazy in the coconut!

  • What does that mean? That boy needs therapy

It refers to the slang meaning of coconut as head whose usage dates back to the first part of the 19th century.

1848 - Bell’s Life in Sydney 30 Dec. 2/6: Kenny shook his cocoa nut like a mandarin in a Ludgate Hill Grocer’s.

(GDoS)

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When the coconut was brought back from the tropics people found it so strange milk from a nut strange delicious pulp found up a tall tall tree SO STRANGE & CRAZY!!!! so crazier than a coconut.

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