Let's deal with a couple of issues here.
First, you can damage almost any nerve in your body. But, it isn't very likely and not that easy to do. Your penis has an extremely high density of nerve endings that are at the tip, the nerves gather and conduct along the shaft which also has fair amount of nerve endings. When you masturbate, you are stimulating these extremely sensitive nerves to send a big signal to your brain. It gives your brain an extereme emotional response which might be overwhelming, but I suspect is just causing you an extreme state of relaxation which is normal.
Second, reference your statement: ive been having these "anxiety attacks" because im constantly feeling pains all over. i get sharp pains in my head, both sides of my chest, arms, legs u name it. Anxiety attacks cause the pain. It doesn't mean anything is wrong in your body per say. The neurons in your brain misfire when your too anxious cause little, painful muscle spasms. I you want to get the problem under control, go see a psychiatrist and get some medicine.
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a nerve question 
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