If that’s what happened, it’s not any more bizarre a turn of events than any explanation for the Betty and Barney Hill abduction case that doesn’t involve them either lying or actually being abducted, and I don’t think they were lying or abducted (although lying is more plausible). Also, from a “who died where” perspective, it made sense. If they got so freaked out that they ran away from the car, it explains why two people ended up dead in the woods while three made it to the trailer. Then it’s Gary, Ted Weiher, and Jackie C. Huett in the trailer. If Gary had a mental health episode, the other two couldn’t have fended for themselves. If it had been Jack Madruga in the cabin I’d have said that I’m skeptical that he didn’t just go back down the road to the car wrapped in a blanket or something, but he died in the woods, and Ted and Jackie sound less like they’d know what to do.

I started out thinking this theory was going to be dumb, but it’s not. But it’s way too complicated and conjectural for the small amount of “evidence” that specifically points to it. If it’s true we’ll never have good evidence, which is true of some of the other theories, but not all of them.
I do think it’s a better theory than them getting lost, or than Joe Schons telling the truth.