According to Osho, licentiousness is the mind’s swing to one extreme—an unrestrained, reactionary indulgence born from repression—just as insane as suppression itself. Both create each other like a pendulum. He doesn’t advocate either pole; instead he urges awareness—seeing directly, beyond beliefs—so intelligence finds a sane, balanced way of living where desire is neither repressed nor compulsively gratified.
Licentiousness is going wild because you were forced to be too strict; Osho says skip both and stay aware so you act wisely.