Exact same thing happened to mine pretty much in the same place too:
Forced a rebuild. I put it down to heat, I couldn't find anything else that could have caused it. When i got the bike there was little to none coolant in the rad when i emptied it as the red light was coming on constantly, the previous owner must have had it overheating often or something. I think the damage must have already been done and shorlty after it gave up.
After the rebuild and service it's been great since though.
My lads Speedfight piston was exactly the same, and that was down to a semi-seize, due to the oil pump not working properly, a common fault on Speedfight scooters. Twice his did it. It can be down to something as simple as not bleeding the pump properly, (air block)
My monies on the same with your pistons too! Thats why alot of people go pre-mix.
-- Edited by NEV on Monday 2nd of May 2011 12:28:36 AM