Panic arising during contemplation about 4 elements This is not a general question about how to deal with overwhelming fear, but a question about an specific experience. 

I contemplated about the 4 elements and how my body is made up of it (for the first time ever you could say). I was not having a formal sitting with closed eyes, but I was rather looking at my body like 'here I can see the solid bones of my hand (through the skin)', 'when I press with my fingers at this spot of my arm it moves, so there must be fluid under the skin' ... 

And while doing this I had a feeling as if I was  some scientist who examines the body of an unknown species and my body looked so strange to me, that great fear (of the body I think) suddenly arose. I was so shocked and overwhelmed, that I had to stop there immediately.

My question is: What happened there?
Most of the time people live most of their lives without changing contexts too much. For the mind, living in the same context gives a sense of security. It also makes us dumb and highly vulnerable. Once we believe in a context and objectify it, it becomes reality for us. At the end of the day, this is why we die.

When you start playing with your context by adopting a different perspective (mode) of seeing things, you are getting into an unknown territory - unknown for your mind anyway. Naturally, there is a sense of panic.

What Buddhism teaches us is freedom from any context. Doing what you did is a first step. It's not necessarily valuable in and off itself - but it gives you a glimpse at how your mind reacts to its attachments being challenged.