Panic sales is often engaged in when the price of a token is falling at a rate not expected at a certain point in time and it leads to fall in the price as there might possibly be a lot of people who would want to sell rather than buying and that will keep dragging down the price.
those who made the sale in panic I think the novice investors who just started investing in crypto, because for those who are already experienced enough will surely know this kind of situation what to do with the assets they own. it is true that selling it automatically will only worsen the condition of prices in the market, supply and demand still affect the crypto market itself.