We show that correlations in strongly interacting many-particle systems can create quantum decoherence, leading to a mechanism of dissipation that does not rely on an external source. Using analytical methods, we study a bosonic many body system in two dimensions, with extended interactions between particles. We show that, as expected, the system can be driven out of a coherent state. Surprisingly, when the interaction strength is sufficiently large, the system reenters the superfluid phase even after coherence is lost. The breakdown of quantum coherence is a certainty, but interpreting the process correctly relies on understanding and preserving the nature of the coupling between the constituents of the many particle system. The methods used provide a natural cutoff point at the critical temperature, where superfluidity breaks down.