I also have problems using CPAP although mine is mainly due to general discomfort. I recently discovered Bongo Rx. Bongo Rx is a rubber and plastic valve that you place in your nostrils. It is only really good for mild to moderate sleep apnea but works beautifully for me. The pack comes with a range of sizes of devices and includes a carry case and full instructions. I will never go back to a CPAP mask. I sleep through the night now. Hadn’t done that for many months. Sometimes I notice that I need to dry out the breathing device and there is of course a learning curve, as with anything else. Once I got used to it I felt the device was excellent and totally worth it though. If my memory serves the kit is over $200, so not cheap.

A relative of mine experiences panic attacks in close situations due to cancer treatment where he had to have radiation while wearing a form fitting face mask. You might want to explore hypnosis or Acupuncture to help de rease these panic feelings. I recently started CPAP therapy and the mask gives me that closed in, stifling feeling. I try to focus on the air going in when I breathe. To be honest, when it gets to be too much, I take it off and put it back on after I've slept a few hours. I'm trying to build tolerance because of the benefits of therapy. Best wishes and hope you find a solution that works for you.