In late November 2021, Puntland’s bustling port city of Boosaaso became the stage for a dramatic political and security standoff. The Puntland Security Force (PSF), an elite U.S.-trained counterterrorism unit, turned its loyalty away from President Sa’iid Abdillahi Deni after he abruptly replaced its long-serving Director General, General Mohamud Osman Diyaano, with a controversial appointee. This decision not only alienated the PSF’s Osman Mohamud clan base but also jeopardized its funding, base, and operational cohesion. The PSF crisis highlights the intricate interplay of clan politics, leadership missteps, and external influences in Puntland’s security landscape. With U.S. support withdrawn and no sustainable funding in place, the unit’s future is uncertain. Integrating it into the UAE-backed Puntland Maritime Police Force could further inflame clan tensions, while disbanding it risks leaving a dangerous security vacuum. Politically, the fallout has severely damaged Deni’s reputation, eroding trust even within his core clan constituency and casting doubt on his federal presidential ambitions. If mishandled, the crisis could offer an opening for Villa Somalia, Qatari funding, and Islamist factions to expand influence in Puntland turning the PSF from a counterterrorism asset into a political liability.