Yes you are right also that panic sell sometimes save us from losses or give huge profit.
Suppose a trader brought a coin at  1$ then the price suddenly pump to 3$ then he should sell the coin as soon as possible. So more panic= more profit.
Again if the price dumping from 1$ to 50 cent. And from 50 cent suddenly start pump to 90 cent. And dump again to 50 cent. So at thus situation he should sell the coin at 90 cent panic with 10% loss. Then he can buy the Coin at low price again.

So I want to say panic is not good but sometimes it can be good depending on your luck.