Do a compression test and make sure the cylinder can hold a volume of compression. This will tell you if the piston is damaged of if it is a top end engine problem.If the compression is low,squirt some oil in the spark plug hole(not a lot a few quirts)and see if it brings the compression up. If it does, then there is a problem with the piston rings collapsed/carbon. If there is no compression, you need to do a cylinder leak down test or look down the cylinder with a bore scope and see if you can see any damage.
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