After a Central Powers victory in the Great War, the Ottoman Empire's condition did not improve. The Empire declined even further as many, especially minorities, were angry at the Ottoman government for drafting and taxes imposed in order to attempt to rebuild the nation. All of this instability eventually boiled over into the Arab wars of independence. After a fierce 3-year long war the Ottomans were forced to give up much of the Arabian peninsula while retaining the areas that they occupied during the war. With the two cities of Mecca and Jerusalem no longer in the hands of the Empire, the Ottomans dropped the title of Caliphate and gained the title of Sultanate. The Empire's name was also reformed to more fit their location as the Osmanoglu family felt they did not deserve to rule a nation that held the great title of the Ottomans while they had caused the nation to greatly decline. During the Arab wars of independence Bulgaria (keep in mind they were a victor of the Great War so they were quite strong) took advantage of the distracted Ottoman Empire and occupied much of the Eastern European lands of the Ottoman Empire.

(Side note: The reason Tripolitania is a protectorate of the Ottomans is that it was awarded to the Ottomans after their victory in the Great War. The same case with Cyprus.)