Understand this is a non-literal phrase commonly used to express overreaction due to fear, not involving a real button. He lost his keys and immediately pressed the panic button, assuming they were stolen.
Pro Tip 2/3
Not Always Negative
Though it suggests an overreaction, sometimes it means responding to stress or danger with strong measures. When the virus hit the town, the mayor pressed the panic button and instated a lockdown.
Pro Tip 3/3
Emotional Intensity
The phrase can indicate a high emotional response which may not be logical or thought-out. Seeing the wasp, she pressed the panic button and ran screaming.