Please make your build-panopoly.make file follow the standard:
build-[distro].make files should contain the project itself to download, so basically add:
projects[panopoly][type] = profile
projects[panopoly][download][type] = git
projects[panopoly][download][branch] = 7.x-1.x
Just like it's done in spark: http://drupalcode.org/project/spark.git/blob/051170ffeebb308b04a77aa724c...
Otherwise this distribution won't work on http://simplytest.me/