I had my first sanity issues, and it was a huge pain in the ass. I assaulted a landed UFO with 2 agents and was able to handle the sectoids pretty easily by luring them into farm buildings and shotgunning them, but when I got down to the last alien, both of my agents ran out of sanity and kept panicking. Over, and over, and over, and over again.
The last sectoid must have been out of ammo or something because it was apparently unable to do anything to either of my agents. So I was in a situation where I just had to kill 1 more guy to win, a guy who was literally right next to my agents, but neither one of them could attack it because they couldn't stop panicking. Eventually, after literally dozens of turns, one of my retarded agents got ahold of themselves long enough to take 1 step towards it and pull out a knife, and then I turned savescumming on so I could make sure I landed a couple hits on it. Many more turns of watching my guys panic later, it eventually dropped from blood loss, and I won. Hurray, I fucking hate it -_-