Could be defective, yes. Where is this car from?
The 94 should have had a two-piece (rubber fuses them together) harmonic balancer, but people have been known to replace them with the older one-piece parts.
The water pump is not likely to be misaligned, but the power steering pump itself or the bracket can fail and cause misalignment. Either the aluminum (stupid design) holes can be "wallered out" into ovals, or the shaft seal for the pump can go bad. Often a bad bracket leads to a damaged pump seal. Either one will cause belts to wear unevenly, although this is the first I've seen a belt totally failing. I think the seals are usually damaged by overtensioning the belt.
Good luck!
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