Panic
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Panic is a state of mind your soldiers can fall into when things are going badly on the battlefield, when officers have been killed or lots of men are down and the aliens are not taking casualties as quickly causing a severe dip in morale. Panic can also be induced by Psionic attacks, and it is possible for your Psionics trained in your Labs to use Psi-Amps to also attempt to panic the alien forces.
A panicked unit will lose of its time units, and will sometimes drop any held items and run in a random direction.