@Cyracuz,
Too little knowledge can be a bad thing. Nobody knows under what exact conditions the wave function collapses because nobody can resolve Schrodinger's equation for more than a few particules, e.g. for atoms, let alone molecules. We can't predict sub-atomic, particule level physics, therefore.
This has been a vexing problem: we have theoretically the equation that rules the world, but our mathematicians can't solve it... All they can come up with is approximations, assumption-based simplifications of the function.
What is the current consensus, to my knowledge which admidedly dates a bit, is that interactions with other particules lead to the collapse of a wave into a particule. Since any observation implies an interaction (e.g. with a photon), any observation will lead to a collapse.
But observation is only ONE OF MANY WAYS in which a wave can collapse into a particule. It's therefore not a necessary condition.