Myawaddy, a critical trading post in Myanmar that rebel forces seized from the ruling junta last week, offers a glimpse of dynamics playing out across the Southeast Asian country as its vaunted military reels from battlefield losses.

At the border town's outskirts, the site of the most intense fighting, abandoned homes sat next to buildings pockmarked with bullet holes, gas stations damaged by blasts and structures flattened by airstrikes, reporters saw on a visit this week.

Rebels who fought against junta troops in Myawaddy described a demoralized military that was unwilling to hold its ground.