Here are instructions on how to upgrade:

 * Download the latest packaged version of Panopoly from Drupal.org. This will
   include updated versions of all of Panopoly’s bundled modules, themes, and
   libraries.

 * Upgrade your existing site to use the code you just downloaded. Check out
   these instructions for more information: http://drupal.org/node/1223018

 * Backup your database and run update.php *TWICE* on your site. This may
   perform several database updates for Panopoly and its bundled apps and
   modules.

 * Navigate to the admin screen for Features (admin/structure/features) and
   revert any overridden features (unless you have intentionally made overrides
   you want to keep).