Last week a California judge granted permission, at the request of doctors from the Hillman Psychiatric Center in Ventura County, to extend Amanda Bynes’s psychiatric hold for another 30 days. According to state law, such an order can only be approved if the patient is “gravely disabled as a result of a mental disorder” or “is a danger to others, or him or herself.” 
 
 But a source very close to the 27-year-old former child star tells us her prognosis is not all doom and gloom. 
 
 “Amanda has made significant improvements, she is doing better than she was,” an insider told FOX411’s Pop Tarts column. “There are no drug problems involved, it’s all mental. She has deep anger and PTSD, which tripped a psychotic episode… She is very ill, but manageable. Amanda genuinely wants to get better and has wanted to get better for some time.” 
 
 We’re told the PTSD (post-traumatic stress disorder) stems in part from the pressures of her Hollywood career, in which she shot to Nickelodeon stardom as a child, before declaring that she was “retiring” a few years ago. Bynes also has very deep-seated conflict issues with her parents, with whom we’re told she's not particularly close. 
 
 Still, Judge Reiser did grant Lynn Bynes temporary conservatorship over her daughter on Friday. But unlike the case of Britney Spears back in 2008, the conservatorship is very limited, and more of a “safety valve” to stop Bynes from making an irrational decisions. 
 
 “Amanda can’t make important decisions regarding her finances and welfare,” explained the source.”But her parents can’t either. Everything still needs to go through Amanda lawyer and the judge.” 
 
 We’re also told that Bynes agreed to stay for the extended 30 days the night before the court hearing, as her team expressed concern she may try to leave treatment sooner than what would be appropriate without the court’s involvement. 
 
 “She is easy to deal with at the moment and agreed to stay,” continued the insider. “While she is doing much better, Amanda needs to be monitored. She is on heavy anti-psychotic drugs and that requires constant medical observation. She wasn’t able to attend the hearing on Friday because at this point in treatment, she should not be moved.” 
 
 Bynes has been staying at the Ventura-based psychiatric treatment facility since July 22, where she was taken in on an involuntary hold after starting a campfire in a stranger’s driveway. 
 
 According to our source, at this stage, the conservatorship is not likely to become permanent. 
 
 “It doesn’t happen often (that it is approved) because it is a really big deal,” California lawyer Anahita Sedaghatfar added. “It is basically taking away a person’s liberties, and (Bynes’s parents) will have to show that she really can’t take care of herself.” 
 
 Lawyers for Amanda and Lynn Bynes did not respond to a request for comment. 

 Amanda Bynes She's Crying And That's A Good Thing 
 
 Amanda Bynes -- She's Crying ... And That's A Good Thing 
 
 EXCLUSIVE 
 
 Doctors forgot a 30-day extension on her psychiatric hold ironically because she's doing better -- and surprisingly it involves a cascade of tears ... TMZ has learned.We previously reported the Rx cocktail doctors have concocted to treat what appears to be her schizophrenia seems to be working. We're told in the last few days, Amanda has had a breakthrough.Specifically, she's showing emotion -- something many schizophrenics don't show at all. We're told Amanda was crying on Wednesday and Thursday night, saying she was scared about the Friday court date -- which she did not attend. Patients who cry are viewed as improving, because sadness is typically not in the playbook.And we're told Amanda spent Thursday night confiding in one of the nurses about her future, saying she's fine and did not need confinement in a hospital. We're told the doctors believe her ability to form clear thoughts is progress.It seems a little inconsistent that she's doing better yet doctors sounded the alarm that they needed to keep her for an additional 30 days because she was "gravely disabled." We're told doctors insist they were honest about her condition and feel they can help her with more time.
– If your money was on "Amanda Bynes is most definitely on drugs," at least one source says you're wrong. The insider tells Fox News that Bynes, who is currently on a psychiatric hold and under the temporary conservatorship of her mother, is actually suffering from "deep anger and PTSD, which tripped a psychotic episode." Though the actress is "very ill," the source says she's getting better. What caused the alleged post-traumatic stress disorder? The pressures of child stardom, apparently, as well as problems with her parents. But "Amanda has made significant improvements, she is doing better than she was," the source says. "Amanda genuinely wants to get better and has wanted to get better for some time." That's causing her to be "easy to deal with at the moment," the source adds; Bynes herself agreed to remain at the California psychiatric facility where she is reportedly receiving "heavy anti-psychotic drugs." TMZ reports Bynes had a "breakthrough" in recent days, but it has her diagnosis down as schizophrenia. She reportedly started crying and showing emotion, which doctors view as a good thing for a schizophrenic.