Mikael Gath's men were huge favorites going into the game but the hosts were quickly punished for their complacency, when Perer Vincze made the most of a two-minute penalty for Oscar Fisker Molgaard to give the visitors the lead after only 33 seconds.
Bad then turned to worse for the Danes when Andras Mihalik were suddenly left unmarked to lift it into the roof of the net past Sebastian Dahm and silence the Danish crowd.
The Hungarian lead became the signal for the Danes to up the pressure and after Krisztián Nagy had been handed a two-minute penalty, the Danes reduced the deficit, when Mikkel Aagaard steered the puck past the Hungarian keeper with four minutes left on the clock in the first period.
Hungary managed to preserve their lead going into the interval but the last two periods turned into a nightmare for Gergely Majoross' side as they conceded no less than seven goals against a Danish side looking like a serious contender for a spot in the quarter-finals of the tournament.
At first Markus Lauridsen restored parity into second half, when Bence Balizs committed a huge blunder to allow the weak shot from Lauridsen slip past him. And after Morten Poulsen hit the post for the fourth time in the match, Jesper Jensen gave Denmark the lead for the first time in the game 12 minutes into the second period.
Just 26 seconds later the Danes made it 4-2 as Balizs palmed a shot from Nick Olesen into the path of Patrick Russell who could easily steer the puck into the empty net.
In the third period Aagaard scored two further goals while also Markus Lauridsen and Mathias Bau Hansen got on the scorebard to round off a glorious Danish performance.