Balloon glow "flicker burn" in Albuquerque
What's happening here is a flicker burn. The balloon pilots rapidly turn their burners on and off to make the row of balloons appear to twinkle in the night.
The lights were changing as I was holding the camera and it occurred to me to see what would happen if I paused for a moment during the panoramic sweep motion. I was expecting the balloons to be completely lit up throughout the image (which is what a DSLR would do as its shutter remains open) but not in this case, so some strips of balloon show up dark.
This picture revealed to me an interesting aspect of the panorama feature. The camera is constantly recording images and only adds to the panorama the last bit of the scene that is seen before the camera moves away.
Try waving your hand in front of your phone while taking a panorama, hold still and then lower your hand before moving on, and you should see what I mean.