Germany lost ________________ and had to pay back war debts as part of the Treaty of Versailles. This left Germans bankrupt and angry.

The answer is that Germany lost World War One and had to pay war debts as part of the Treaty of Versailles. This treaty was signed at Paris on June 28 1919 by politicians representing the Allies, like Great Britain and America, and Germany. In essence, the treaty blamed Germany for the devastation and destruction which resulted from World War One and, under its many terms, Germany agreed to make reparations to the affected countries. These reparations demilitarised Germany and forced it to return much of the territory it had gained in the war, like the province of Alsace-Lorraine. Moreover, it also stated that Germany must financially compensate the Allies. This figure was later set at 132 billion gold marks. (See the reference link provided).

Germany was shocked and outraged by the Treaty of Versailles and, in the longer-term, their frustration at having to pay back so much paved the way for the development of German nationalism and the rise of Adolf Hitler.