Is the remorse that leads to psychological collapse and self-punishment true remorse, or is it wrongful behavior?

The required remorse is a pain in the heart over committing a sin and wishing it had not been done, coupled with the knowledge of the sin's gravity and its consequence. Remorse of the heart is sufficient, followed by resuming life actively and striving in obedience and multiplying good deeds. This is because remorse is not meant to deter one from obedience or hinder worship; rather, it prompts diligence and activity in obeying Allah Almighty and making up for what has passed.