"Berserk" and "Panic" situations??

Morale is implemented, but I'm not sure if the aliens are affected by it. ClosetYeti's LP has a Xenonaut team going nuts after losing half the squad in a single turn.

I think part of it might be that every alien is worth the same, morale-wise, unlike the Xenonauts where losing a few high-ranked troops is a big hit.

Haven't really felt the effects of panic so far, even with rookies. In the 25 hours or so that I've played on steam, not a single one of my guys have panicked. I even had a mission where my entire squad ended up dying save for one guy who only had about 8 hp left, and he limped back to the skyranger just fine without panicking.

On a side note, it would be nice if some aliens created more panic among your soldiers, or at least the reapers should. Seeing your guys get zombified and turned into fellow reapers should be horrifying to your soldiers, even if in they're in a group.

Morale system is in. Looks it has extremely low values maybe to dont bother you while testing balance. "Moraleconfig_gc" has all the config for it, tweaking numbers there may make morale effects very noticeable.