1. Someone stops consuming carbohydrates
2. This causes them to produce significantly less insulin
3. In order to preserve ~~insulin~~ glucose for the brain, other insulin receptors are downregulated
4. Because of this downregulation, the subject is less tolerant of carbohydrates
This is "pseudo-diabetes" and not "diabetes" because a person on a ketogenic diet isn't producing insulin, whereas a diabetic can't produce (enough) insulin, or is so desensitized to it that glucose stays in the blood steam.