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Often used on Fark.com as a ending tag line to a headline that is used as a scare tactic by the media. The over dramatization causes the reader to feel the full effects of the sarcasm and coulis [sense of humor] the submitter intended for the headline. In formal usage it can be an [exclamatory] phrase to express very real danger and incite chaos to the crowds causing mass damage to area's and buildings as well as the people panicking. Please don't yell "Everybody Panic" [in the middle] of a large crowd as it is an offense that could get you arrested. However funny it might be.
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