Is it defined by a list of traits or the people?

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People are diagnosed with mental disorders based on diagnosis critera. However, overtime the diagnosis criteria change as more is learned about the people who are diagnosed. So are diagnoses really based around a set or traits, or around the people diagnosed with them? This also brings in another question: Is is possible for a large amount of people to be misdiagnosed with something, or does the definition just change to accommodate those people?