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Intimidating someone one isn't Fear Aura tho. It needs to be explained that he can 'put pressure' on or exude an aura that causes others to perceive him as Daemonic.It said "intimidated a viking so much that he mentally broke" which fits.
Putting it as "When he is serious, others literally perceive him as a Daemon which causes their minds to snap." makes no sense because Thorkell wasn't serious at all.
The mind of his enemy broke cuz he had to face Thorkell in a 1 vs 1. Thorkell approaching him was enough for the man to lose his mind, lose his memories, and revert back to the mind of a child.