Panic exits share a pattern: no level was hit, the decision was made while arousal was peaking, and the price obtained was worse than the one available a minute before or after. Aggregated across many participants this is what produces a capitulation low. See capitulation.
The causes are usually structural rather than emotional. Size too large for the volatility, no pre-set stop, and watching the position continuously. Fix those and the same news event is uncomfortable rather than unbearable.
Distinguish it from a planned exit at an invalidation, which can look identical from outside. The difference is whether the level was written down before the move started.
Related: capitulation, freeze-response, adrenaline-dump, stop-loss