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Following the inconclusive Battle of the Coral Sea (May, 1942) Japan realized that the US carriers (while outnumbered) represented a threat to their continued landing operations. They sought to engage the US carriers in a decisive battle and establish a forward position on Midway Island.
Unfortunately, things went wrong. Of the three Japanese carriers that fought at Coral Sea, one was lost and the other two needed repairs. That left 4 carriers to attack Midway. Also, the US had broken the Japanese Naval Code and knew where the fleet was going to be. A combination of skillful planning and fortuitous occurrences led to the destruction of all four Japanese carriers, while the US lost only the Yorktown.
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