Insulin deficiency results in lipolysis increasing free fatty acid production. The fatty acids are then degraded through eight stages within the mitochondria. Each stage releases one molecule of acetyl-co-enzyme A. In the absence of insulin more of this is formed than can enter the citric acid cycle and the acetyl-co-enzyme is reduced to beta hydroxy-butyric acid or decarboxylated to acetoacetic acid and subsequently to acetone. The acetoacetic acid also reduces the glucose uptake by cells.
Beta hydroxy-butyric acid, acetoacetic acid and acetone are acids causing in part the acidosis. Beta hydroxy-butyric acid also causes nausea and vomiting, increasing the dehydration.
The increase in cortisol, catecholamines and growth hormone activates hormone-sensitive lipase which leads to lipolysis causing the release of free-fatty acids which are taken up by the liver.