You raise an interesting, and fair point. But it’s also fair to point out that Hungary was a somewhat reluctant ally of Nazi Germany. Some say Hungary joined the Axis out of greed, to gain territory.
Others say it was to avoid the same fate that befell Yugoslavia. (As you might know, the Yugoslavs hesitated to play ball with Hitler. So they were quickly overrun, and occupied.)
In Hungary’s case it was probably some combination of greed and self-preservation.
Anyway, I must make a gentle correction to your post. Hungary lost most of its territory after WW I, not WW II.
“But it’s also fair to point out that Hungary was a somewhat reluctant ally of Nazi Germany”
Maybe, but they took to it with enthusiasm. One quote:
“Nazi observers wrote with surprise at the particular cruelty of the Hungarians with occupied peoples subjected to arbitrary violence.”
When the *Nazis* find you to be too vicious you’re going pretty far.