The worst case of target panic I have ever seen was me about 8 years ago I am surprised I did not give up on archery all together.
I have been shooting since I was 7 years old (i am 25 now). I was given a punch-o-matic wrist release when I started shooting ....and had no idea you were not supposed to aim, and then punch it when things looked right.
I shot as well as can be expected ...but things really caught up with me when I was about 15. I was starting to shoot some 3D, and at the worst point of my target panic I would hold my pin about a FOOT above the deer target and all in one motion I would drop my bow and punch the dogcrap out of my release. If I tried to aim at a target you would think I was having an epileptic seizure. It was tough times, and I knew something was seriously wrong. I did not have the experience to know what I was dealing with or how to deal with it.
Fast forward to that next winter. Deer season was over, I was 16, and me and my buddy decided we were going to shoot at the indoor range in the evenings (since we could drive...and all ). There were some really excellent shooters at our little club ...and I am going to be forever greatful for what a few of them did for me.
It took about 2 trips to the range for some of the regulars to let me know I had one of the worst cases of target panic they had ever seen. I had no idea what that meant. One guy in particular kinda took me under his wing and gave me a good talk. "If you want to get over this you are going to have to do what I say and not question it." One of those type of deals. First thing he did was lend me a Stanislawski 4 finger release. The second thing he told me was that I was going to shoot with my eyes closed, at 5 yards ...every night for the next week. The next step would be to shoot at 10 yards, with my eyes open now, at a blank butt for another week, working on form and perfecting my release with the stanislawski. After that, he said I would stand at 20 yards, and start aiming at a spot....and hold it as long as my arms could take it ....without ever firing a shot. For about 3 nights. ONLY THEN...would I be able to start shooting regularly again. And if any signs of target panic reappeared, the cycle would start all over.
Let me tell you ....that was some seriously BORING weeks. But he reassured me, and I stuck with it. My target panic was completely cured ...and I found out that I was a pretty good shot once I got that out of the way.
I spent that next summer on the 3D range, and occasionally would shoot at blank butts ....or shooting with my eyes closed ....or just practicing aiming without firing, just to make sure I kept the bug away.
That next fall ...I was so scared of going back to a punch-o-matic wrist release that I HUNTED with my Stanislawski!! I was not going to sacrafice all I had worked for. I killed my first deer that fall with my trusty Stan.

I went into the Marines 2 weeks after the IBO World that following year ....and mostly gave up archery. This past fall was my first season bowhunting again, and guess what ....I can feel the target panic creeping back into the picture again. It wasnt so bad that I couldnt control it by calming myself ...but that urge was resurfacing. Once I get the turkey hunting out of my blood and I start shooting 3D this summer, the Stanislawski 4 finger is coming out of retirement and it is time to get back to work!

Not sure if anyone is still reading this ...sorry to have been so long winded. Just one mans story of the battle with target panic. Good luck to those of you dealing with it!!