Regardless of the exact technology used, the drain line carries away the fluid that flows through the first stage of the valve. It is this flow that creates the pressure drop in the first stage which in turn creates the pressure difference to position the second stage of the valve.
If you block the drain line, there's no first stage flow and no pressure drop so both sides of the first stage output pressurise up to servo pressure, regardless of first stage position. At this point, you have lost control of the second stage.
A.