Kermit the Frog is a Muppet character created by Jim Henson who first appeared in 1955, and his wide eyed arm flailing has long been used to show excitement turning into chaos. Online, that physical comedy became a shorthand for panic, with editors looping frantic Kermit reactions over stressful or embarrassing situations. The crazy panic dance version leans into that tradition, pairing the familiar puppet energy with meme timing. It stays popular because almost everyone recognises the feeling of overreacting, and Kermit makes that meltdown look harmless, expressive and instantly shareable.