Confabulation is a cognitive distortion that can be very destructive. Firstly, it's quite possible to make up positive stories, but we are wired for a negative view which at some point a long time ago helped our ancestors survive (all of our ancestors succeeded in having sex because they assumed the rustles in the bushes were sabertooth tigers). Secondly, we operate from incomplete and erroneous data. I see and hear things but I don't always see and hear everything and I don't always see and hear them accurately. I sometimes have massive gaps in my perception of a situation. And, if I am in a bad mood, angry or stressed, I have a much greater risk of making up a story that does not serve me.