Have you tried taking him out and utterly exhausting him, then putting him in there right until he wakes up and taking him out with praise, treats, toys, whatever he likes as a reward before he panics? If you can create a habit of that, it could work in your benefit. A tired dog will generally sleep anywhere, and if you're nearby and can take him out and give lots of praise and rewards before he freaks out, you could likely break the cycle.
The world would be a nicer place if everyone had the ability to love as unconditionally as a dog.
Kona, you will be forever missed...
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