In just the word panic selling, means selling and just selling their tokens as fast as they can and they dont even care if its price is at the lowest bid, they just want their tokens to be sold. So the result of this for example panic selling in bitcoin, the result of it is very disaster especially when many users panic sell. The bitcoin price may result to its lowest point.
Panic selling would mean that whatever price the buyer is willing to buy it then he would sell it and he doesn't care how much of a loss he will be going to incur a long as he can let go of the coin. There are many reasons why some people panic sell may it be because of a recent news that causes him to sell because he is afraid that the price go lower or he just saw a big red candle in the chart and think that there is something going down that's why the price drop dramatically.
I don't understand people who panic sell. Today also, when one should buy more at a dip, people are exiting by selling low. Panic sell does nothing but bring in more unnecessary dump. People who involve emotions in trading are the worst hit.
Unfortunately when you are a newbie in trading then you tend to give in to your emotions because at the time you bought the coin, you don't have a trading plan which is basically just gambling because you don't know when to sell may it be to take profit or stop your losses that's why many are panic selling even though you should be doing the opposite which is buying.