The word crazy can carry multiple meanings. When Lionel James uses the term to describe the audiences that listen to his Indigenous stories, he’s likely suggesting that the situation is out of sorts, disordered, or absurd.
One reason why Lionel might think it’s deranged is because the people—i.e. white people—who are now asking Lionel to tell them about Indigenous culture are the same race of people who oppressed (and continue to oppress, in different ways) Indigenous people. The current interest coupled with the various oppression seems to leave Lionel with an uncanny feeling.
Additionally, Lionel appears to think it's crazy because these audiences only want to hear stories “about how Indians used to be.” When Lionel tries to tell stories about “how things are now,” his audiences express displeasure. The overriding preference for past stories makes it look like Indigenous people are a thing of the past—as if they’re not a part of contemporary life. This notion could be called crazy.
One more loony element involves Lionel’s troubles with credit cards and hotels. It could strike readers as bizarre that Lionel is asked to speak at all of these places, yet the people who invite him and fly him out can’t help him secure a hotel room.