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Hi
Waht your are seeing is bump not displacement.
First your displacement map must be set to RAW and not sRGB ( 32 bit float or 16 bit half float)
Uncheck Auto Bump, zero out Scale Zero Value if you do not want up and down, and set Subdivision catclarck to 4 or 6
displacement maps require a sophisticated type of file if you want them tyo work easy peezy. make sure your file is a 32bit exr file i learned this the hard way. basically whats happening is that your displacment map doesnt have enough info in the file to stretch it cleanly so it start todo wierd shit, that should solve your problem if not then it will take alot of research to figure that out