I've struggled with target panic over the years, and finally seem to have come up with a solution that works for me. I would like to present it here, not as "the answer to target panic," but as "an answer that has helped me" in the hope that it might help someone else too.
In the course of my struggles, I've tried everything I could find on the subject, including many solutions that evidently have worked for other people, but didn't work for me in the long run. Everything I tried seemed to work for a while. When I say "everything," I mean everything from the most respected methods out there to shooting left handed to buying a new bow. Anything that would occupy my mind would work as long as my mind was occupied with the novelty of the change, but then after a while, target panic would begin to creep back in.
My symptoms of target panic were that my muscles would begin to tense as I drew the bow, and frequently would lock up short of full draw, so that I couldn't draw any further. If I made it anywhere close to full draw, I would feel an increasing urgency to release the arrow, so I was never able to reach full draw and hold, and usually released before reaching full draw. I could easily draw the bow and hold so long as I wasn't planning to shoot the arrow at a target. Sometimes I was able to shoot casually with my friends without target panic, but as it became worse, I could never shoot a tournament without a full blown attack. Interestingly, I never had a problem hunting, where it was just me and the animal. It only seemed to happen when I was shooting with other people.
Finally I read an article by Denny Sturgis Jr, in the Aug-Sep '15 Traditional Bowhunter, where he recommended looking at the back of the riser while drawing the bow, or in extreme cases, closing your eyes while drawing the bow. I tried this, and found that I was able to draw to full draw, every time, just like I could when I drew the bow without any intention of shooting at the target.
The problem was, when I shifted the focus of my eyes back to the target, I was usually off target to the extent that I had to make a major adjustment to get back on target, I wasn't relaxed, I still had an urgency to release the arrow too soon, and was making all sorts of other shooting errors, so I couldn't hit much of anything. Other than that, I was making progress, because at least I was at full draw while all this ugly stuff was going on.
The first thing I learned, with the help of Arne Moe, was how to make major adjustments after reaching full draw, by keeping my "T" alignment from the waist up and moving at the waist. This wasn't easy, since I had ingrained for years the habit of locking everything down after reaching full draw, but unfortunately I was locked down off target since I wasn't looking at the target as I drew the bow. If I needed to make a major adjustment, I had to learn to break things loose at the waist, while keeping my upper body in alignment. It helped at first to make sweeping movements across the target to get things unlocked, after which I could make the minor movements I need to make to get on target without wrecking my T alignment.
Then I had to get rid of the residual target panic I still had after I shifted my focus to the target. After I became confident that I could always draw to full draw by looking at the back of the riser, and that it wasn't just a transitory thing, I began pausing at full draw while still looking at the back of the riser, until any residual nervousness went away, and I was able to relax. Only then would I allow myself to focus on the target. I found that if I was relaxed when I shifted my focus to the target, I stayed relaxed as I aimed. Also, if I was relaxed, I didn't make as many annoying errors around the point of release, like plucking, peeking, failure to follow through, creeping, etc.
My present goal is to gradually reduce the major adjustments I have to make when I shift my focus to the target. I find that as I get more confident, I can wait longer and longer before I have to start looking at the back of the riser. If I'm looking at the target until I'm almost at full draw before I start looking at the back of the riser, I find that my bow doesn't drift that far off target, and I don't have to make as many major adjustments. Note that I say "looking" not "focusing;" I don't focus on the target until I'm ready to shoot the arrow. I've really come to appreciate my last moment relaxation technique while looking at the back of the riser, so I don't think I ever want to get rid of that entirely. But I would like to minimize the time I'm looking at the back of the riser as I'm drawing the bow in order to minimize any last moment major aiming adjustments I might otherwise have to make. I can envision a time when I'm not looking at much of anything for a moment as I make sure I'm relaxed before starting to aim.
This has really helped me, and I'm back to shooting pretty good scores in tournaments. If it has helped me, there is probably someone else out there it might help too, but I know enough about target panic not to say that it would work for everyone.