"Service Battery" after recalibration and SMC reset

I purchased a unibody 13'' MacBook Pro 13 months ago (and didn't have the foresight to buy Apple Care, oof) and I've lately been running into some battery issues.
I live overseas and I've been traveling a lot recently. I just moved into a new apartment and finally settled in. Within a few days I noticed that my battery was only lasting about 2 hours. I figured it was because I am forced to use a VPN for most my websites. Anyway. Using an app called Coconut Battery, the capacity of the battery was about 78% of its designed 5450mAh.
I recalibrated my battery last night and woke up to find the battery life had not improved. Following the Apple guide, I rest the the SMC and PRAM.
After it rebooted, it now says "SERVICE BATTERY." The battery got up to 99% charge and stayed there for over an hour before it finally charged. But now, my capacity, after only 70 cycles, is 52%, 2859mAh.
What would cause such a dramatic decrease in battery capacity for my laptop?
What are my options for remedying this issue? Draining the battery and attempting to recalibrate again?
Any help would be greatly appreciated.
Charge Information:
Charge remaining (mAh): 2859
Fully charged: Yes
Charging: No
Full charge capacity (mAh): 2859
Health Information:
Cycle count: 70
Condition: Check Battery
Battery Installed: Yes
Amperage (mA): 262
Voltage (mV): 12587

When you get the service battery message the battery needs to be replaced - it  is like the service engine warning lamp on a car or the robot waving its arms and yelling "Danger Will Robinson."
If you have Apple's 3 year AppleCare you may be able to get the battery replaced under warranty - Apple says the battery should retain 80% of its charge after 1000 cycles and you didn't even get 1000 cycles out of it. Even if it isn't still under warranty you can at least ask for free replacement or a price break since it failed before reaching 1000 cycles. I know people who have been successful with such an appeal.

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