You should not refer to yourself an “moron.” You are not that. You are insightful and recognize that you may have a problem.
While I cannot be certain, there may be a problem developing. You avoid people. You are not comfortable in the presence of others. When something is troubling you, you psychologically escape to a fantasy world. In the fantasy world you feel okay. Engaging in fantasy is a form of disassociation. Fantasy allows you to distance yourself from things that are bothering you. It is a psychological defense mechanism.
You may wonder “what’s the harm in fantasy?” You stated that “most of the time” you know the difference between reality and your fantasy world but “most of the time” is not enough. You need to be able to make the distinction between reality and fantasy 100 percent of the time. Anything less than 100 percent is not acceptable. When you begin to lose the ability to differentiate between what is real and what is not, it is a dangerous, slippery slope. The risk is that you will lose your grip on reality completely.
You should be evaluated by a mental health professional. I know this will be difficult because you are not comfortable interacting with people but you need to force yourself to attend treatment. There is nothing more important and central to psychological health than being realistic and logical.
How could a mental health professional assist you? He or she could teach you alternative ways to deal with stressful situations. Learning new skills might decrease your urge to retreat into fantasy. They serve to help you stay grounded in reality. A therapist could also assist you in improving your social skills. Better social skills might increase your confidence level. It might also help to decrease your tendency to isolate yourself.
Here’s a link to Psychology Today where you can search for a therapist in your area. You should be proactive and consider seeking help from a mental health professional.