Panic effect + Smoke skills?

I'm not 100% sure, so consider my input as speculation only, but seeing how panic ploy works, I think that it would either stack with the atk smoke debuff or the highest debuff amount rule will be applied. What leads me to this is the fact that panic status seems to exist independently - you can see it with harsh command, which reverses debuffs, but it doesn't reverse panic. The other thing that would lead me to the stacking conclusion is the different status icons used - debuffs have the downward arrow sign, whereas panic has the exclamation mark.

Panic Ploy does not reverse the debuff from Atk Smoke.

The easily way to probably understand why is, the game holds two variables for a stat, one categorized as 'buffs' while another as 'debuff'. These two are independent from one another.

Panic Ploy only affects stuff that is part of the 'buff' category and just reverses the buff to a negative form. It's still considered a 'buff' in the game data, even though it's negative. Panic Ploy does not interact with anything categorized as 'debuff', leaving Atk/Spd Smoke alone.

So a hero can have a single 'buff' & 'debuff' for a stat, but cannot have more than 1 'buff' or debuff on a single stat. Also panic ploy never actually changes anything to positive. It's probably more accurate to say that Panic Ploy only reverse 'positive buffs'

I've seen it with a Panic/Threaten skill. The easiest way to describe it is the minus caused by the Panic effect is added to the minus of the threaten, for a total of 11 debuff.