PICNIC is a phrase that members of the chat room like to say when a live stream goes down.
The story of PICNIC begins in early 2010. After about a dozen episodes of NSFW, there was one episode that had technical issues getting going. When the live stream failed, the chat room started posting "PANIC!" in rapid succession. Amongst the panic, a lone "PICNIC!" emerged from a Chatrealmer. Eventually, the mistake caught on, and the word PICNIC became the universal signal of shit hitting the fan.
It is accepted/assumed that Patrick Delahanty was the one who said it, but . Other theories cite it to a random Web_XXXX person. Sadly nobody has IRC logs far enough back so it shall be a mystery forever.
In February 2012, popular Justin.tv/Twitch streamer Jayson Love (AKA "Man" of MANvsGAME), appeared on episode 115 of NSFW (Man Hype Man) and picked up the phrase somehow. Man's kinda popular. The shit spread like wildfire, and inspired the "panicBasket" emote.