diff --git a/gnu/system/linux-initrd.scm b/gnu/system/linux-initrd.scm
index 983c6d81c8..cb29a656b9 100644
--- a/gnu/system/linux-initrd.scm
+++ b/gnu/system/linux-initrd.scm
@@ -1,5 +1,5 @@
 ;;; GNU Guix --- Functional package management for GNU
-;;; Copyright © 2013, 2014, 2015, 2016, 2017, 2018 Ludovic Courtès <ludo@gnu.org>
+;;; Copyright © 2013, 2014, 2015, 2016, 2017, 2018, 2019 Ludovic Courtès <ludo@gnu.org>
 ;;; Copyright © 2016 Mark H Weaver <mhw@netris.org>
 ;;; Copyright © 2016 Jan Nieuwenhuizen <janneke@gnu.org>
 ;;; Copyright © 2017 Mathieu Othacehe <m.othacehe@gmail.com>
@@ -279,6 +279,7 @@ FILE-SYSTEMS."
             "isci")                      ;for SAS controllers like Intel C602
           '())
 
+    "pvpanic"
     ,@virtio-modules))
 
 (define-syntax %base-initrd-modules
diff --git a/gnu/system/vm.scm b/gnu/system/vm.scm
index e561285964..b671c74ab8 100644
--- a/gnu/system/vm.scm
+++ b/gnu/system/vm.scm
@@ -187,8 +187,9 @@ made available under the /xchg CIFS share."
                   ;; When USER-BUILDER succeeds, reboot (indicating a
                   ;; success), otherwise die, which causes a kernel panic
                   ;; ("Attempted to kill init!").
-                  #~(when (zero? (system* #$user-builder))
-                      (reboot))))
+                  #~(if (zero? (system* #$user-builder))
+                        (reboot)
+                        (exit 1))))
 
   (let ((initrd (or initrd
                     (base-initrd file-systems