First of all, druckenmiller found through a lot of research that the Thai baht was obviously overvalued, and even officials of the Bank of Thailand felt that this currency was overvalued. At that time, the Thai government's dollar reserve was about 654.38+000 billion. Soros roughly calculated the leverage ratio between his own funds and the Thai government's dollar foreign exchange reserves, and felt that the problem was not big, so after attacking the Philippine peso, he began to target Thailand.

After that, Soros began to slowly buy Thai baht and sell US dollars in the foreign exchange market, which led to an increase in the exchange rate of Thai baht against the US dollar. First of all, this is a very slow process, and people will always unconsciously ignore some threats brought by slow rise. Just like putting a frog in water and cooking it with the smallest fire, the frog will feel very comfortable. The water is boiling, and it can't escape. When the Thai baht reached a higher position, Soros began to violently throw out his own Thai baht, and the panic in the market also led the Thai people to start selling their Thai baht to buy dollars.

The direct result of the crazy selling of Thai baht is the sharp depreciation of Thai baht. In order to fix the exchange rate between the two countries, the Thai government began to sell dollars, hoping to maintain the original exchange rate. At that time, some US dollars in the foreign exchange reserves of the Thai government needed to buy arms, which means less than US$ 654.38+00 billion. At that time, Soros's quantum fund had a total asset of $50 billion, and the overwhelming advantage made the Thai government's assistance seem to be a drop in the bucket.