Fatty liver is extremely common in those with insulin resistance and T2DM. Hyperinsulinemic resistance begins in the liver when it starts rejecting glucose as it slowly runs out of places to store it as fat. It then has little choice but to begin storing the resultant fat inside itself and the surrounding organs. If you remove the source of the glucose (diet) and burn off what's already in the body (time) then the liver will normally quite quickly rid itself of those internal fat stores. This intraorganic fat also has the propensity to clog-up the pancreas and reduce its capacity to secrete insulin, so the benefits of getting rid of all this visceral fat are tenfold.
