Panknin was last seen camping with his parents and three older brothers at the Deep Lake Resort (now defunct) in Stevens County, Washington, about 20 miles from the Canadian border. Panknin was hiking with his mother and two of his brothers on an isolated logging trail. One of the boys left the trail to look at a small creek and their mother followed him, telling the other child to stay with Panknin. But Panknin's brother followed his mother and brother to the creek, leaving Panknin alone. They didn't walk more than 100 or 150 feet and were only gone for a couple of minutes, but when they returned to the trail, Panknin was no longer there. An extensive search, involving bloodhounds and 4,000 volunteers, turned up no indication of his whereabouts, not even footprints. Dogs traced his scent for a couple of miles, but then lost it.

Both of Panknin's parents are now deceased, but his brothers are all still alive. It's possible he was abducted, but authorities believe it's more likely he got lost or was attacked by a wild predator such as a cougar, an eagle or a bear. His case remains unsolved.