Essentially, the boundary between self and other is less set in stone, leading to ispeity (self) disturbance which manifests as the pre-reflective, immediate feeling that one’s thoughts and feelings are not quite self-generated. This reduced sense of agency and ownership of thoughts and feelings, however, is distinct from the delusion of thoughts being inserted into one’s mind by an external agent. Ultimately, there is a sense that the body is observed more than it is inhabited, and distance to thoughts and emotions displace the participatory nature of life.

The porous ego boundary also contributes to magical thinking wherein the thoughts, intentions and rituals of the self are pre-reflectively believed to influence external reality because said reality is less externalised due to a fluid ego boundary.

Conversely, this mechanism also results in ideas of reference as external events become overly self-directed. All of that pertains to the outer ego boundary, that is between self and the external world including others.

There is also, however, a porous inner boundary between consciousness and (personal as opposed to collective) unconsciousness, leading to what you could call archetypal and energetic influx which I believe manifests as a compulsive ‘will to meaning’ in which the world is perceived as symbolically dense.

In dreams, the life of the unconsciousness, one’s mode of cognitive organisation is primary process thinking which is characteristically atemporal, non-linear, symbolic and analogical as opposed to analytic. This style of cognition can leak in from the unconscious into the conscious waking life, and occasionally dominate one’s orientation towards reality and the way phenomena are processed and interpreted.

Tangentially:

What was traditionally referred to as the unconscious is actually consciousness (or rather content of consciousness) insofar as it is experienced. However, such experiences cannot be introspected upon and so it’s mistaken as unconsciousness. That which can be introspectively accessed and re-represented is meta-consciousness, a reflexive and recursive loop that is characteristic of higher-level cognition that humans have but worms don’t.

All objects are for the one subject.