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Collapse Previously Expanded Header Item When Clicking on a Header Item Without Child Items

You could easily achieve your goal by hooking on the OnClientItemClicked event of the PanelBar and use the following JS code:

<script language="javascript">
    function collapseRoots(sender, args) {
        if (args.get_item().get_items().get_count() < 1 && args.get_item().get_parent().get_parent() == null) {
            for (var i = 0; i < sender.get_items().get_count(); i++) {
                sender.get_items().getItem(0).collapse();
            }
        }
    }    
</script>
<telerik:radpanelbar id="RadPanelBar1" runat="server" expandmode="SingleExpandedItem"
    onclientitemclicked="collapseRoots">        
    <CollapseAnimation Duration="100" Type="None" />        
    <Items>           
        <telerik:RadPanelItem runat="server" Text="Root RadPanelItem1">                
            <Items>                    
                <telerik:RadPanelItem runat="server" Text="Child RadPanelItem 1">                    
                </telerik:RadPanelItem>                    
                <telerik:RadPanelItem runat="server" Text="Child RadPanelItem 2">                    
                </telerik:RadPanelItem>               
            </Items>            
        </telerik:RadPanelItem>            
        <telerik:RadPanelItem runat="server" Text="Root RadPanelItem2">            
        </telerik:RadPanelItem>        
    </Items>        
    <ExpandAnimation Duration="100" Type="None" />   
</telerik:radpanelbar>