Whenever someone says it was "as big as a ..." or "impossibly fast", they're usually interpreting what they actually saw through their faulty intuition about those things. Angular size like the OP said is a useful observation, but not actual size.
I experienced this the first time I flew on a plane. I was watching the clouds passing by just below the plane and had a feeling for our comfortable speed, then suddenly a whispy bit of cloud in the foreground shot past much faster than I thought we were travelling and gave me a little shock. I then realized the clouds I'd been watching were probably much further away than I'd imagined.
Even if it was close by, you don't jump from almost stationary to the other side of the sky from your perspective at a reasonable speed.
How did you judge the distance of a silvery oval in the sky? We're generally pretty bad at estimating distance without sufficient cues (https://www.sciencedirect.com/science/article/pii/0042698979... https://psycnet.apa.org/record/1997-02284-005 https://www.nature.com/articles/35102562). It may have been something smaller and closer than you thought, and so not necessarily making insane movements.
> Either this is psychological and people have some kind of built-in hallucination effect for this specific phenomena in the sky
It doesn't have to be "built-in" - suggestibility could play a big role.