There are well-defined differences between Bipolar Disorder, otherwise known as Bipolar I, and Bipolar II. The major difference is in the severity of the mood swings. Bipolar I, formerly known as manic-depression, is associated with very severe mood swings between depressive states and manic states. Bipolar II is a disorder that is less severe than Bipolar I. It is marked by chronic depression. Rather than manic episodes, Bipolar II patients suffer from hypomania, which is less severe than a manic episode. In hypomania, the symptoms are not severe enough to interfere with normal functioning as mania is with Bipolar I.
Bipolar I can also present itself as a mixed episode, wherein a severely depressed person can experience a manic episode at the same time. Bipolar II patients do not have mixed episodes. Bipolar I is also associated with hallucinations, delusions, and psychosis. Bipolar II patients do not experience delusions and hallucinations. Bipolar II patients do not exhibit psychotic features. Bipolar I patients often have what is called rapid cycling, in which they experience changes from depressive states to manic states quite frequently within a short period of time. Rapid cycling is also associated with mixed episodes. Racing thoughts are another symptom of Bipolar I that you do not find in Bipolar II.
The Bipolar I patient is more likely to become incapable of coping with the world around him or her and experiences the need for psychiatric hospitalization. Patients with Bipolar II rarely need hospitalization, because their symptoms are less severe and easier to treat with medication.

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