What does 'Each boy said what he thought had happened' mean?

[joham]

Each boy said what he thought had happened.

This sentence is taken from Collins Cobuild Usage, without context. The Chinese version of the dictionary translates the sentence like this:
Each boy said that the thing that he had thought of had happened.


But I would think this sentence means:
Each boy described what had happened the way he thought it happened.

Could you please explain what exactly this sentence means?

 

[MikeNewYork]

To me it sounds as if each boy gave his version of what he saw happen.

 

[Raymott]

It means, as you say, "Each boy described what had happened the way he thought it happened."