mahāprabhu dekhi' - by seeing Śrī Caitanya Mahāprabhu; satya - truly; kṛṣṇa-daraśana - seeing Kṛṣṇa; nija-ajñāne - by their personal lack of knowledge; satya chāḍi' - giving up the real truth; asatye - untruth; satya-bhrama - mistaking for the truth.

When the people saw Śrī Caitanya Mahāprabhu, they actually saw Kṛṣṇa, but because they were following their own imperfect knowledge, they accepted the wrong thing as Kṛṣṇa.