The Rebbe explains that emotional overreaction stems from a lack of deep internalization of hashgachah pratit. He advises meditating on “לפני המלך” from Tanya ch. 41, continuing with daily Chitas, and avoiding overanalyzing one's spiritual state—instead, following the straight path of Torah with effort and consistency.
https://www.torahrecordings.com/rebbe/igroskodesh/015/012/5678