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The phrase "a spiral of panic" is correct and usable in written English.
It can be used to describe a situation where anxiety or fear escalates uncontrollably.
Example: "As the deadline approached, she found herself caught in a spiral of panic, unable to focus on her work."
Alternatives: "a cycle of anxiety" or "a whirlwind of fear".
Exact(2)
Serious crashes such as those of the past three days create a spiral of panic.
The bond markets took fright, pushing up the risk premiums on Greek borrowing to exorbitant levels and triggering a spiral of panic and brinkmanship that engulfed Ireland and Portugal and exposed the flimsy foundations of the common currency.
Similar(58)
We need to stop a vicious spiral of panic.
In the middle of his downward spiral of panic, he realized something: "I'm in a competition.
A spiral of dense smoke drifts up from his chair.
It becomes a spiral of ever-expanding excess.
It was a spiral of glass?
It is a spiral of destruction.
It's a spiral of decline".
This leads to a spiral of suffering among civilians.
Otherwise it just becomes a spiral, a sense of panic".
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Since I tried Ludwig back in 2017, I have been constantly using it in both editing and translation. Ever since, I suggest it to my translators at ProSciEditing.

Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com