Tom Riddle had a really bad reputation at his orphanage, but so did Harry in Little Whinging. Fact is Mrs. Cole found Tom creepy for being a baby who didn’t cry much. She’s superstitious. My guess is that she is the one who threatened Tom with the loony bin. Death would be kinder. About the stealing, traumatising two other kids or killing the rabbit. You realise that we only got one side of the story. Do some research about orphanages at that time. Things were really different back then.