Target panic is a mental block that steals control of the shot away from you. As Chad said, it can take many different forms. For at least 5 years, I had the first version of TP in Chad's description. It wasn't too bad at first, but it got worse and worse month after month until last summer. It got so I was almost afraid to go out on the 3D course with the guys. It was so damnably frustrating I was on the verge of quitting archery altogether. Finally discovered that my target panic was being caused by a physical ailment (crapped out shoulder) and when I switched to left handed the TP was immediately gone. Made me wish I'd talked to my doctor years before. So, target panic IS always a mental problem, but it can be caused by underlying physical problems.

I've been shooting 32.5" 2117's w/125 gn tips from a 50# @ 32" recurve, so I think the 2117's you've got are at least 10 pounds overspined for you. If you can, try and get ahold of a few 2016's and 2018's in the length you need and give them a try. I'd bet either size will zip along perfectly for you, but one might be a tad better than the other.