I know the meaning of tearing something down, but what about the meaning of to the studs. I don't understand the sense of the whole sentence.

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    It's hard to say without more context, but the writer may be referring to stud walls [BrE]. These are usually interior walls in the UK, but in a wood-frame building, all the walls will be stud walls. – Mick Nov 28 '16 at 12:36

In conventional "wood frame" house construction in the US, the "studs" are the vertical wood members ("two-by-fours") behind the (typically "plasterboard") wall surface.

So, literally, the expression means that the (interior) walls were ripped out but the wall framing was left in place.

Figuratively, the expression is occasionally used to indicate that something (say, a computer program) was "ripped up" and rebuilt/reworked.

(The expression is reasonably common in the US.)

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