a healthy pancreas "knows" exactly how much insulin to create in order for healthy digestion...it is when something goes wrong with the pancreas that things go wrong...
hyperglycemia means high blood glucose level...hypo means low....a cats glucose level in Canada should be between 4 and 9 mmvo/L (according to my vet)...if your cat has stopped being able to utilize glucose as its main source of energy it will start to use its own fat storages for energy (not normal...called ketosis)...this can happen for a number of reasons...it can happen because there is a problem with the cats pancreas itself in that the pancreas stops producing enough insulin (the hormone that enables the body to utilize glucose for energy) OR there may be a different underlying cause for your cats body to not be able to utilize glucose for energy...
this can lead to an overload of glucose in the blood called hyperglycemia (high glucose levels in the blood)...but for whatever reason ...in the case of hyperglycemia...your cat needs immediate vet attention...a cat with hyperglycemia will be lethargic and not feel well and in some cases can end up seizuring which can lead to coma and death...
hyPOglycemia is LOW glucose levels which is also dangerous for your cat...it can lead to DKA (too many ketones being produced in cats body)...very dangerous situation....
in the case of a diagnosis of diabetes...your cats body cannot regulate its own glucose levels so very specific amounts of insulin prescribed by your vet will need to be administered usually twice a day in order for your cat to maintain healthy blood glucose levels...without this your cat can develop many serious complications in a short period of time...
it is possible for a cat that has been diagnosed with diabetes to go into remission and all of a sudden his pancreas decides to begin producing insulin again...there are no signs that this is about to happen ....this can be dangerous for your cat as too much insulin (whether its from a needle or your own cats body) can cause a medical emergency (typically a seisure)...this is why BG level home testing BEFORE you give insulin is the safest way to avoid disaster...
I hope this helps somewhat ....I am not a vet so please understand this is only my take on it after some research ....