He tweeted the following:
So, I found out how to enable Panorama is the iOS Camera app. Set the key ‘EnableFirebreak’ to YES in com.apple.mobileslideshow.plist
You can see above how it works and below shows the outcome of the picture. A new jailbreak tweak called “FireBreak” can enable this feature for those lucky enough to be jailbroken.
Apple will likely add this functionality into an update like they did with HDR.