DO NOT READ IF YOU DON'T WANT SPOILERS!
I only understand this movie thanks to my girlfriend. So if you disagree, take it up with her.
The idea behind this movie is that what the camera shows you is not necessarily reality, but the perception of reality by someone. It seems that Marc is experiencing symptoms of schizophrenia. Schizophrenia (in low levels) can often exist undiagnosed for many years. There can be triggers, even simple things, that like catalysts can escalate the condition. For Marc, it was his mustache. Marc probably never had a mustache, but thought he had it in his mind. Being such a subtle constant in his life, it was never directly addressed. The moment he decides to "shave it", it caused him to merge his schizophrenic world with reality, which obviously led to escalating clashes. This condition often leads to paranoia and mistrust, which was apparent in his deteriorating relationships.
Regarding the photos and other "evidence" that supposedly showed that he was not crazy, those were viewed through his eyes. He may have had a mustache many years ago in Bali, and found those photos as "evidence". A person in his condition finds only elements that support his reality, and his mind pushes away elements of the truth as it obviously contradicts his perception. If you believe something to be as fact, and suddenly people tell you otherwise, you would feel paranoid, scared and distrustful as well. It led him to believe a conspiracy against him, but which is more likely? An elaborate conspiracy or a man losing his grip on reality?
His escape to Hong Kong (whether it really happened or not) is symbolic of his attempt to reconcile his senses. Just before that, he fails to remember his parents home and phone number. He is no longer sure of his reality. The extended ferry scene is symbolic of his passage between reality and insanity.
Now regarding all the scenes after he awakes from the sleeping pill, runs out of the house, and returns all wet from the rain... There is a lot of evidence that this was all a hallucination, that he was either dreaming or had completely lost his mind. When he takes his socks off and puts on his shoes, the shoelace breaks. Remember in the very beginning, when he is hiding his newly shaved mustache, he uses his shoelace breaking as an excuse for taking too long in getting ready. Then on the ferry scene, he rides back and forth, yet the same passengers appear in different places around him on each trip. It is hardly likely that they are also riding back and forth. These and other clues are hints that this may not be reality, but instead Marc's mind using elements in his subconscious to paint a dream.
The very last scene, when apparently several days have passed (noted by the slight beard and mustache he had grown, change of shirt), he arrives back at the hostel surprised to find his wife there. Notice the room appears as if they were living there for a while. At this point, it seems like he is transported back to that Bali trip, reliving it. His wife subtly notes "he can't have the beard in Paris, she would like to see him without it". It shows him shaving, debating whether to remove the stache as well. He ends up shaving it off, and the movie ends with him laying in bed eyes open, anxious. I see 2 ways of interpreting this. One is that he remembered that he in actuality did shave off the mustache, never had it since, realizes that he is crazy and stuck in this hallucinated world. The second is perhaps he is reliving that moment, as if it is a nexus point, allowing him a second chance to change his fate by shaving the stache off, but still he realizes he has lost his mind.
Obviously, there are a lot of elements in the movie that are left up to interpretation. But I believe the main plot is his descent into schizophrenia triggered by something simple as a mustache.
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