Well this isn't going well! Not well in the slightest! It certainly isn't your fault though. You made it very clear - All applicants must be experienced lucid dreamers. That's why you didn't test this on yourself after all. It was already questionably ethical to research the construction of a helmet that harnesses and amplifies psychic potential, especially when it turned out it only worked when the subject was asleep. You certainly weren't going to just slap it on and see what happened though. No, you did the proper responsible thing, put out an ad for people who can always control their dreams, willing to take part in a dangerous experiment.
And yet here's this guy, who CLEARLY lied on his application, seated at one of the 30 desks he just manifested right in the middle of your lab. He's in his underwear. You're dressed up... presumably like his old math teacher or something, and apparently he has enough range on this uncontrolled ability that people are just wandering on in from across the hall to sit at the other desks and laugh at him. WHAT NEXT!?