The most common and most likely answer to this crossword clue is the 13 letter word CONSTERNATION
I've seen this crossword clue in The Daily Telegraph
C
O
N
S
T
E
R
N
A
T
I
O
N
More clues leading to the result CONSTERNATION
- Anxiety about millions leaving huge country
- At first, cinemagoer natters rudely during tear-jerker, causing dismay
- Unease caused by Conservative standing in for magnificent leader in enormous country
- Dismay of criminal’s time with Queen and Country
- Business people must hold back alarm
- Dismay of company people having to accept authoritarian
- Panic seeing rook, queen and knight in position
- Dismay one inside with austere allowance that’s not right
- Panic, seeing stars forgetting lines replaced by sailors
- Dismay — poor Tories cannot win without Women’s Institute
Buddy explains!

The straight part
We know that "Panic" is the straight/definition part of the clue. The straight part is often a synonym or definition, in this case panic = consternation.The cryptic/wordplay part
In cryptic crossword there's often an wordplay/cryptic part as well.This part involves a more complex hint, such as an anagram, homophone, hidden word, etc.
Sadly, We don't have an explanation for this specific crossword clue yet.
What does CONSTERNATION mean?
CONSTERNATION noun- Amazement or horror that confounds the faculties, and incapacitates for reflection; terror, combined with amazement; dismay.