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This is only said in an optional line somewhere though and is never really properly addressed as far s i know.
I'm not really sure how a canonical line in the game constitutes his madness being "never really properly addressed". It's not like it's made up by fans or only accessible in the Ultimania; it's a canonical part of all translations of the game. Certainly, a bigger deal could've been made out of it, and it's pretty clear we're not supposed to spend time dwelling over the tragedy of Kefka's existence, but it's definitely there, and supplemental materials expand on it greatly.
As TV Tropes points out:
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Kefka spends a full year causing destruction, but life continued and people still carried on hope for the future. In the end, while Kefka snaps at the party that their lives are meaningless and worthless, his life is the one that has truly become devoid of meaning and worth, because he cast off such things trying to deprive others of them.
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Even with their homes burned, mutated monsters roaming the world, friends and loved ones dead, and the world a charred husk, the people of the world, including the party, find the strength to keep living and look for hope for the future. Kefka is at first confused by this, then goes to enraged because it doesn't make sense to him.
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Perhaps one of the darkest interpretations of [Woobie, Destroyer of Worlds], evidence in the original game and Dissidia suggests it isn't so much Kefka not seeing the value of love and hope as it is he actually can't understand them anymore, his mind is just too far gone, and destruction is all he has to bring joy and meaning to his life with everything else beyond his understanding now. His famous end-game speech in VI is reused in Dissidia, but with a very obvious tone of despair to the words, Kefka seemingly lamenting the meaninglessness of life rather than declaring it.
The Ultimania guide to FFVI suggests that Kefka was once one of the Empire's top generals. After the Magitek infusion damaged his mind, he was forced to step down and reappointed as Gestahl's personal lackey, then made to oversee the perfected Magitek Knights, Terra and Celes. What really drove him over the brink was watching Leo take up his former position and outdo him in every aspect.
When the Returners give their collective "World of Cardboard" Speech at the end of the game, Kefka looks down and turns away for a moment, seeming distinctly sad. Unfortunately, that's when he really goes off the deep end.
And finally, Kefka's Dissidia 012 museum profile implies that he was Driven to Suicide in the final storyline because he thought destroying himself might finally satisfy his insatiable need to destroy.
If that isn't tragic, I'm not exactly clear what it is. It's not really dwelt on in the original game but a lot of this is still pretty heavily implied regardless.
I have to confess I haven't really bothered looking that much into the backstories of most of the other villains because, to be frank, I don't really care about most of them. Kuja is the only other villain in the series that ever affected me enough to care to research things about him outside the game or the random tidbits people post on message boards. That said, according to the Ultimania, the Jenova control theory about Sephiroth is incorrect, but a lot of people regard that as a retcon since the game itself heavily implies the opposite (although this may just be a quirk of the poor translation we got). I'm kind of on the fence about it, though I tend towards thinking of it as a retcon myself.