A 38-year-old woman from Delhi is diagnosed with hereditary breast cancer (BRCA1 mutation carrier). Genetic testing confirms a frameshift mutation in exon 11 of BRCA1 that results in premature termination codon. Tumor analysis shows loss of heterozygosity (LOH) at the BRCA1 locus and complete absence of BRCA1 protein. Which of the following best explains the molecular basis for the development of cancer in this patient?

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