trauma - A deeply distressing or disturbing experience, especially one with lasting emotional impact; a psychological or emotional wound, often resulting from an intense or life-threatening event.
Childhood trauma can have long-lasting effects on a person’s mental health
fairytale - A children's story about magical and imaginary beings and lands; or something that is too good to be true or seems unreal.
He told a fairytale about how he got the job, but no one believed him, and people suspected that he had a relative in management.