In January 1671, the original city of Panama, founded by the Spanish in 1519 and seen as a crucial hub for trade and transportation between the Atlantic and Pacific Oceans, faced a devastating attack led by the infamous privateer Henry Morgan. Known for his bold and aggressive tactics, Morgan had already made a name for himself in various exploits against Spanish settlements and shipping in the Caribbean. His forces descended upon the city, which was poorly defended due to a recent conflict that had drawn many of its resources away.

The assault was swift and ruthless, with Morgan's men overwhelming the city's defenders. After extensive looting, they set fire to the city, destroying countless structures, including churches, homes, and warehouses filled with valuable goods. The flames consumed much of what had made Panama a thriving center of trade, leaving behind a landscape of smoldering ruins. This destruction not only marked a significant shift in the balance of power in the region but also symbolized the rampant lawlessness and violence prevalent at the time due to ongoing conflicts between European empires seeking dominance in the New World.

In the aftermath of the attack, the city was abandoned and remained largely in ruins, becoming known as Panama Viejo. The remains of the city serve as a poignant reminder of the historical significance of piracy and privateering during the 17th century, as well as the vulnerability of colonial settlements to external threats. Morgan's raid exemplified the shifting tides of power in the Americas, emphasizing the relentless pursuit of wealth and the often violent conflict that accompanied it.