After realizing the cult slaughtered all her companions, Dani deduced that if she didn't comply, and choose Christian, it's likely the cult kills them both. So, backed against the wall, out of shear desperation, she made the choice to pick Christian; At least she gets to live, and perhaps escape/warn someone, etc. However, after she watched him burn, and realized that she was now complicit in a murder, her already cracked mind broke completely. Wrapped in a powerful hold of stockholm syndrome taken to the Nth degree, she went insane.
Here is the last line from the script that illustrates her state of mind:
"A SMILE finally breaks onto Dani’s face. She has surrendered to a joy known only by the insane. She has lost herself completely, and she is finally free. It is horrible and it is beautiful."
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