Precise earthquake locations and InSAR (Interferometric Synthetic Aperture Radar) deformation observation are the major methods to understand the earthquake occurrence and disaster-causing process. This paper proposes a processing framework for analyzing strong earthquake mechanisms from one-dimensional velocity inversion to precise earthquake locations combined with InSAR deformation observation, and discusses earthquake-generating fault and dynamic mechanisms of tectonic deformation. We analyzed the Menyuan Ms 6.9 earthquake in 2022 and discuss the historical seismic activities and corresponding stress adjustment processes in the research region. To analyze and study the seismogenic structure and mechanism of the earthquake, we investigated the spatial and temporal distribution characteristics of the Menyuan earthquake sequence and analyzed the InSAR coseismic deformation field. We obtained the precise locations of the main shock and aftershocks and the coseismic InSAR deformation field of the main shock. It was confirmed that the Ms 6.9 earthquake was a shallow sinistral strike-slip earthquake, which led to the sequential activation of the Tuolaishan and Lenglongling faults. The main seismogenic fault of the mainshock was the northwestern end of the Lenglongling fault, and the earthquake rupture was segmented. It can be inferred that the earthquake was a stress-adjusted event triggered in the Qilian-Haiyuan tectonic belt caused by the northeasterly push of the Qinghai-Tibet Plateau. The risk of moderate to high earthquakes in the region remains high in the future, requiring enhanced seismic observations.