When you have a vertical panel and autohide set to never, it looks like this with tooltips (though it would be nice if the tootlip appeared next to the launcher rather than next to launcher below the highlighted launcher).
If autohide is set to inteligently or always, tooltips appear above the panel.
The positioning of tooltips is handled by Gtk directly and is hard to mess with. So far I've had little luck to be honest...
The explanation for this behavior particularly is that the panel doesn't set struts, so areas that cannot be covered by a window, when it is in autohide mode "always" or "intelligent" so the tooltips are positioned so they overlap the panel.
The problem here isn't about the tooltip being off screen - it isn't off screen. If the panel had struts it would be constrained by those, but when the panel can hide it doesn't set struts and covers windows when it shows. In turn, that means the tooltip is allowed to cover the panel, as long as it fits on screen.
Really this isn't working properly even when the panel has struts. The tooltip should be displayed to the side of the source item, rather than above or below. But in both screenshot it is below, and then slid to the side to bring it on screen.
This snippet of code from the link in previous comment confirms it:
Here the positioning is north-south with flip y and slide x, ie the tooltip will be either above or below the source, whichever fits on screen, and then it will slide sideways to fit on screen horizontally. It doesn't look like there is any facility to display tooltips to the side in gtk.