The conflict came to an end after a military and diplomatic intervention by the United States resulted in the Pact of Espino Negro, which began the Peace of Tipitapa.
[3] On 27 January 1925, Emiliano Chamorro, former president of Nicaragua and member of the Conservative Party, launched a coup d'état when his "ultra-conservative partisans" seized Loma Fortress, the military building "dominating Managua" (the Nicaraguan capital), forcing Solórzano and Sacasa to flee the country.
[5] American Marines and sailors were sent to occupy the country's ports to establish "neutral zones", which would prevent fighting in these areas and push the Liberal rebels inland.
[1] To try to put an end to the conflict, the United States arranged a truce and had Lawrence Dennis oversee Conservative and Liberal representatives at a meeting aboard the USS Denver on the 1 October 1926.
[10] In January 1927, U.S. president Calvin Coolidge lifted the arms embargo on the Nicaraguan government,[11] allowing his country to legally provide military aid to the Conservatives.
[11] Marine reconnaissance aircraft flying for the Conservatives were already occasionally receiving fire from Liberal forces, although the more "[r]esponsible" rebel officers tried to prevent a clash with the Americans.
The conditions of the peace were that Adolfo Díaz would remain president until a new, American-supervised election in 1928, both sides would disarm, and a new National Guard would be established.
[20] Sandino scored another victory when he and two hundred followers attacked the city of Jinotega on the 28 March 1927 and captured it "[a]fter a day of fierce fighting,"[21] while serving on José María Moncada's right flank.
Despite an end to the fighting, American Marines would face renegade Liberals, possibly led by Francisco Sequeira ("General Cabulla"), in combat at the Battle of La Paz Centro on the 16 May 1927.
Augusto César Sandino viewed the peace settlement as treasonous and would fight a guerrilla war against the Marines and Nicaraguan National Guard until 1933.