>>149007426
That use is derived from Freudian psychology, wherein "identification" involves patterning oneself after visible aspects of others, as when a child adopts the behaviors of the parents when forming the superego, and when members of a group with shared interest establish in-group behaviors and norms. The cognitive toolkit involved is related to sympathy/empathy, but the psychological emphasis of the term refers to alteration of the self in imitation of what one sees in others. If anon psychologically identified with Max, he would adopt signs or behaviors shown by Max beyond the initial similarity he noticed. That is, cosplay, in effect.
People misuse words, of course. When someone uses "literally" to mean "figuratively", that is a misuse of the word which degrades the ability of people to clearly communicate ideas to the detriment of all.