Hi Reen,
Hemoglobin, the protein that carries oxygen throughout your body is made from equal amounts of alpha globin and beta globin. These globins are produced through the alpha and beta globin genes. There are two beta and 4 alpha genes. When one of these genes has a defect (mutation) or deletion, the quantity and quality of that globin produced is affected. This is called thalassemia and it can range from minor to intermedia to major, the most severe of the conditions. Fetalis hydrops occurs when all 4 alpha genes are affected and no alpha globin is produced. Most of these cases result in the death of the fetus before birth, but sometimes, as with your sister, the baby is born and then dies because no normal hemoglobin can be produced. HbH is when 3 genes are affected. This condition causes anemia, and in some cases transfusions are required.
Thalassemia is a genetic condition passed from parents to children. In HbH and fetalis hydrops, both parents passed the alpha mutations on to the children.