Cloud Corporation owns a commercial building with three floors. The two lower floors are used by Cloud in its business operations. Cloud rents out the third floor to a third party. There was a leak in the roof and the third floor was completely destroyed. Cloud received the insurance proceeds of $75,000, yet decided not to renovate the third floor. Instead, it redeemed 20% of its shares from its shareholders with the insurance proceeds.

Please briefly explain how this transaction could qualify as a partial liquidation.