Whitney defined panic headline investing as situations where an established big well known company is heavily sold due to an one time short term event and stock collapses, sellers dont care about price and their is established panic selling. He categorized his investment into BP into this category.
But he said you got to be careful where business is in full scale collapse there you get into value trap. He said RIMM, Nokia (NOK) are clearly value traps and he is short both stocks
He also categorized decline in Jefferies, Netflix (NFLX), HP (HPQ) and News Corp (NWSA) into the panic headline investing
Here is the video: