Connotation: The term is almost always negative, but its severity depends entirely on the context and relationship between the speakers.
As a Playful Tease: Between close friends, partners, or family, calling someone 矫情 can be a lighthearted way to tell them to stop overthinking things or being difficult. It's a gentle nudge to be more direct. For example: “I bought you a coffee, just drink it! 别矫情了!” (Stop being so fussy!).
As a Serious Criticism: When used to describe a colleague, an acquaintance, or a public figure, 矫情 is a strong criticism of their character. It implies they are fake, attention-seeking, and difficult to deal with.
On Social Media: It's common for people to use the term self-deprecatingly. Someone might post a moody poem or a filtered selfie with the caption, “今天有点矫情” (Feeling a bit sentimental/dramatic today), acknowledging their own moment of over-the-top sentimentality.