It doesn't even have to be a situation of someone being scared really, just overly stressful. When I broke my nose, the report that went out to the watch officer was that I had been sucked into the seawater valve. That isn't even possible, which is a good thing, since a report like that could have caused many other problems had it been possible to do. Did the guy who reported it mean to cause a panic or say something like that? No. But people aren't always rational or don't completely consider what they are saying during stressful situations.