Operation Panzerfaust () was a military operation undertaken in October 1944 by the German to ensure the Kingdom of Hungary would remain a German ally in World War II. When German leader Adolf Hitler received word that Hungary's Regent, Admiral Miklós Horthy, was secretly negotiating his country's surrender to the advancing Red Army, he sent commando leader Otto Skorzeny of the Waffen-SS and former special forces commander Adrian von Fölkersam to Hungary. Hitler feared that Hungary's surrender would expose his southern flank, where Romania had just joined with the Soviets, and cut off a million German troops still fighting the Soviet advance in the Balkans. The operation was preceded by Operation Margarethe in March 1944, which was the occupation of Hungary by German forces, which Hitler had hoped would secure Hungary's place in the Axis powers. This had also enabled the deportation of the majority of Hungarian Jews, previously beyond the reach of the Nazis, through uneasy cooperation with Hungarian authorities. This policy was, however, terminated as Soviet forces drew closer and the USAAF, based in Italy, began bombing Hungary, including Budapest.
Prelude
Having anticipated Horthy's move, Skorzeny had been instructed to remove Horthy from power. Horthy's son Miklós Horthy Jr. was meeting with Soviet representatives. Miklós Jr. was informed by the German Security Service through intermediaries that envoys of Marshal Tito of Yugoslavia wanted to meet with him. Miklós Jr. had failed to keep a prior meeting when he observed suspicious individuals near the proposed meeting place. A second meeting was set for early 15 October at the offices of Felix Bornemisza, the Director of the Hungarian Danube ports. He hoped that the Yugoslavian representatives might have important news, but upon entering the building, Skorzeny and his troops attacked and beat him into submission. They then kidnapped Miklós at gunpoint, trussed him up in a carpet, immediately drove him to the airport and flew him to Vienna. From there, he was transported to Mauthausen concentration camp.
Despite Veesenmayer's solemn promise to obtain Horthy's son's release from the German concentration camp, Miklós Jr. remained a prisoner until the war's end on 8 May 1945. Horthy himself was transported to the Schloss Hirschberg near Weilheim, Germany, and guarded by 100 Waffen SS men at all times. On 1 May 1945, Lt. Gen. Alexander Patch, the commander of the US 7th Army, visited Horthy in his castle prison. Because Hungary had fought on to the end defending Germany, Horthy was considered a prisoner of war. Seven months later, on 17 December 1945, he was released from the Nuremberg penitentiary and was reunited with his family in a private home in Weilheim.