diff --git a/e2etest/zt_newe2e_basic_functionality_test.go b/e2etest/zt_newe2e_basic_functionality_test.go
index e3cc384db..bbd46818f 100644
--- a/e2etest/zt_newe2e_basic_functionality_test.go
+++ b/e2etest/zt_newe2e_basic_functionality_test.go
@@ -1,11 +1,10 @@
 package e2etest
 
 import (
-	"strconv"
-	"time"
-
 	blobsas "github.com/Azure/azure-sdk-for-go/sdk/storage/azblob/sas"
 	"github.com/Azure/azure-storage-azcopy/v10/common"
+	"strconv"
+	"time"
 )
 
 func init() {
@@ -485,58 +484,3 @@ func (s *BasicFunctionalitySuite) Scenario_TagsPermission(svm *ScenarioVariation
 
 	ValidateMessageOutput(svm, stdOut, "Authorization failed during an attempt to set tags, please ensure you have the appropriate Tags permission")
 }
-
-func (s *BasicFunctionalitySuite) Scenario_SingleFile_PanicCheck(svm *ScenarioVariationManager) {
-	azCopyVerb := ResolveVariation(svm, []AzCopyVerb{AzCopyVerbCopy, AzCopyVerbSync}) // Calculate verb early to create the destination object early
-	// Scale up from service to object
-	dstObj := CreateResource[ContainerResourceManager](svm, GetRootResource(svm, ResolveVariation(svm, []common.Location{common.ELocation.Local(), common.ELocation.Blob(), common.ELocation.File(), common.ELocation.BlobFS()})), ResourceDefinitionContainer{}).GetObject(svm, "test", common.EEntityType.File())
-	// The object must exist already if we're syncing.
-	if azCopyVerb == AzCopyVerbSync {
-		dstObj.Create(svm, NewZeroObjectContentContainer(0), ObjectProperties{})
-
-		if !svm.Dryrun() {
-			// Make sure the LMT is in the past
-			time.Sleep(time.Second * 10)
-		}
-	}
-
-	body := NewRandomObjectContentContainer(SizeFromString("10K"))
-	// Scale up from service to object
-	srcObj := CreateResource[ObjectResourceManager](svm, GetRootResource(svm, ResolveVariation(svm, []common.Location{common.ELocation.Local(), common.ELocation.Blob(), common.ELocation.File(), common.ELocation.BlobFS()})), ResourceDefinitionObject{
-		ObjectName: pointerTo("test"),
-		Body:       body,
-	})
-
-	// no local->local
-	if srcObj.Location().IsLocal() && dstObj.Location().IsLocal() {
-		svm.InvalidateScenario()
-		return
-	}
-
-	sasOpts := GenericAccountSignatureValues{}
-	sasOpts.Permissions = (&blobsas.ContainerPermissions{
-		Read: true, Add: false, Create: false, Write: false, Delete: false, List: false,
-	}).String()
-
-	stdOut, _ := RunAzCopy(
-		svm,
-		AzCopyCommand{
-			Verb: azCopyVerb,
-			Targets: []ResourceManager{
-				TryApplySpecificAuthType(srcObj, EExplicitCredentialType.SASToken(), svm, CreateAzCopyTargetOptions{
-					SASTokenOptions: sasOpts,
-				}),
-				TryApplySpecificAuthType(dstObj, EExplicitCredentialType.SASToken(), svm, CreateAzCopyTargetOptions{
-					SASTokenOptions: sasOpts,
-				}),
-			},
-			Flags: CopyFlags{
-				CopySyncCommonFlags: CopySyncCommonFlags{
-					Recursive: pointerTo(true),
-				},
-			},
-			ShouldFail: true,
-		})
-	ValidateMessageOutput(svm, stdOut, "panic")
-
-}