Complex sentence: The financial panic fed on itself causing foreign creditors to call in loans and depositors withdraw funds from banks, all of these magnified the illiquidity of the domestic financial system and forced yet another round of costly asset liquidations and price deflation.
Split into simpler sentences: The financial panic fed on itself, causing foreign creditors to call in loans and depositors to withdraw funds from banks. All of these magnified the illiquidity of the domestic financial system and forced yet another round of costly asset liquidations and price deflation.