Police have said that an "altercation" on a tube platform at Oxford Circus was to blame for the mass panic on Friday evening (24 November).
Hundreds of people rushed out of the station and fled for cover in nearby shops following reports of gunshots.
Oxford Circus station was closed and people barricaded themselves inside shops amid fears of a possible terror attack.
Police said they received numerous calls reporting that gunshots were fired on Oxford Street and at the station at 4:38pm.
After an hour, police said they had found no evidence of any weapons or "shots fired" and reopened the station.
Sixteen people were treated for injuries following the incident. One person was taken to a trauma centre for leg injuries.
On Friday evening, police said the mass evacuation was sparked after an argument erupted between two men on a platform. They have released CCTV images of the men who they believe "may have information about the incident and the circumstances around the incident."
British Transport Police have called on eyewitnesses to come forward and share information about the incident and what triggered the mass panic.
"This caused a significant level of panic which resulted in numerous calls from members of the public reporting gunfire," the force said. "A full and methodical search of the station and Oxford Street was conducted by our specially trained firearms officers.
"During the search officers did not find any evidence of gunfire at the station," it added.
London mayor Sadiq Khan praised the force's swift response and called on people to "remain vigilant" but not to panic. "It is vital that we are not complacent - if in doubt it is always best to err on the side of caution and call the police on 999."