Xun Zi (荀子) says, "The drunken man attempts to Step over a ditch a hundred paces broad, thinking it only a puddle of a foot wide ; he also stoops when entering a city gate, as if he were going through the small door of the harem ; for wine has confused his spirit."
There is only one spelling for panic ; the verb is inflected 'panic, panics, panicked, and panicking’. The form panick is used for progressive tense, past tense and past participle. We don't write panick today, though English speakers from a few hundred years ago might have (in the same way they might have written musick). When the alternate spelling “panick” is used for the past participle: "I panicked last night at the disco." When it’s use for progressive tense: “Invariably, when markets are panicking, they sell the stocks quickly.” It's the rule for root words ending in "c" is that you have to add “k”, so the spelling is related with the pronunciation. If we don't add the <k>, it looks as if the <c> has to be pronounced /s/. If the "k" was not there, “panicing” would look like the word which is supposed to be pronounced as if it is ended in "sing," while “paniced” would be pronounced like “panised”. The same