That's the major reason that it's trying to prevent people from going the stabbing route, due to that panic it will cause. Any outright stabbings need to be assumed to happen towards the end of the night. That panic is inevitable, though, so while they can panic and try to evacuate they are ultimately going to get stymied by Naomi.

Who, in turn, is going to get stymied by the "NPC reaction" mentioned that will be part 2 of the event. Character can be assumed to be getting to the point of panicking and screaming by the very end of the first log, and then those big panic reactions will be handled then.