Due to conditions set forth in the treaty of versailles, germany lost much of its territory. why did this prove to be economically fatal to the nation?

This is because in the war guilt clause, they also had to pay great reparations, which led to hyper inflation as prices rose amazingly, which caused many to lose masses of money and over all put the country in debt. This in turn was also a cause of the second world war because it led to bad feeling and made those in bad economic situations vulnerable to extremist movements.