Completely insane.
The phrase comes from an American television commercial for a breakfast cereal. The phrase comes from the cereal's mascot, a bird that went crazy for the taste of the cereal. Thus "Kookoo for Cocoa Puffs" became synonomous in American pop-culture for someone who was mentally unhinged.
Religious fundamentalists like Jerry Falwell are kookoo for Cocoa Puffs.
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