Great idea for a game and I think it fits well in the theme. Gameplay wise I thought the panic attack aspect of it is a good idea however I'm not sure about the player not being able to control the knight at this point.
I noticed when the panic attack starts and I try to move that the effect responds to my input, this would an interesting thing to incorporate while playing and the player having difficulty seeing where they are going.
The only other thing was the sword, I think for a melee game like this it's best to just have the angle set to the player locally as opposed to having to drag the mouse to various parts of the screen. Something more like old school Zelda where it's based on the player's facing direction.
Other than that this is a really good game with a fair bit of depth to it. Great job on getting all this done the 48!