Question: where did the phase basketcase come from? 

Answer: In its original meaning it comes from the US military immediately following WWI. Strangely though, the term was never used to describe anyone - only in order to deny that any such servicemen existed. This bulletin was issued by the U.S. Command on Public Information in March 1919, on behalf of Major General M. W. Ireland, the U.S. Surgeon General:\n\n"The Surgeon General of the Army ... denies ... that there is any foundation for the stories that have been circulated ... of the existence of 'basket cases' in our hospitals."\n\nThis bulletin was reported on in many U.S. newspapers at the time. Many of them also defined what was meant by 'basket case'. For example, this from the New York paper, The Syracuse Herald, Mar 1919:\n\n"By 'basket case' is meant a soldier who has lost both arms and legs and therefore must be carried in a basket.\n\nGiven that the term was originally reserved for incapacitated servicemen, there wasn't much call for it until the next major war of English-speaking peoples - WWII. Again, it comes from the U.S. military and again in the form of a denial from the Surgeon General. In May 1944, in 'Yank', the then Surgeon General, Major General Norman T. Kirk, said:\n\n"... there is nothing to rumors of so-called 'basket cases' - cases of men with both legs and both arms amputated."\n\nClearly, given the scale of the casualties in both wars, there must have been cases of multiple amputation. It isn't recorded what term the U.S. Surgeon General used to describe these - clearly not 'basket case'.
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