Shutter Island discussion (SPOLIER ALERT)

Ok so this was THE BEST MOVIE I HAVE EVER SEEN. and i would like to discuss the ending with all who have seen it.

SPOLIER ALERT SPOILER ALERT SPOILER ALERT SPOILER ALERT

i think there are 2 endings for discussion.
1.) he was really insane and thats all there is to it
2.) they did as Rachel Solando said they would and drugged him via ciggarettes and food and played him like a fiddle to keep him there.

i am leaning towards the second one simply because of the last 4 sec of the movie where it shows the lighthouse as it just shows me that something was in there the whole time but we saw it as Daniels sees it.

so post your opinion and why i will elaborate my theory later but its gettin late.

actually i think he was really insane
i mean the movie was kinda self explanatory in that way
by this i mean that at the end he saw his memories and did acknowledge he was crazy
well that's just my opinion

Yeah, a lot of people say that, but for me and the few others who want a debate, i decided to make this