The seeming misuse of 'literally' as an intensifier bothered me so much that I looked it up in the dictionary to prove everyone wrong. To my bemusement (ding!), we're all correct.
According to
Merriam-Webster:
Definition of LITERALLY
1: in a literal sense or manner : actually
took the remark literally was literally insane2: in effect : virtually
will literally turn the world upside down to combat cruelty or injustice — Norman CousinsUsage Discussion of LITERALLY
Since some people take sense 2 to be the opposite of sense 1, it has been frequently criticized as a misuse. Instead, the use is pure hyperbole intended to gain emphasis, but it often appears in contexts where no additional emphasis is necessary.