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Belt lost tension but did not break. Valves hit head and locked up, now the cam can't move and therefore the loose belt just slips on the crank sprocket.
You are looking at a new head possibly, definitely new valves, possibly new pistons if they are gouged. Also check the cam over and lifters while you are in there.
It's not cheap but depending on how much you got the car for it can be a good deal and is always a learning experience.
Also please post your car's year and model in your signature for future reference with diagnosing problems.
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