This is form the story night chapers 1 and 2
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In Chapter One and Two, we learn that non-Hungarian Jew are deported, the Germans invade Hungary (including Sighet), Jews are required to give up their valuables, stay in their homes, and wear the yellow star, and they are later relocated to the ghetto. They even push aside Moché's warnings as the ramblings of a crazy man.
Prior to these events, the community doesn't believe the warnings. They don't believe the Nazi intend to exterminate their race, and even when the Germans arrive, they are respectful.