wire frame, water, and lava

as soon as I put a torch in my hand everything turns to an almost wire frame state except for the water and lava and the screen flashes when the torch is in hand. when I take the torch out of my hand everything stays in the wire frame state but doesn't flash fast anymore. I can see parts of blocks in the distance but anything right in front of me is invisible unless my curser is on it then I see a wire frame.