Hey guys new to the forums, have had this problem took the motor apart and now the motor is just sitting in my house.
So what was happening is the piston is slapping the spark plug out. It is bending the plug and the bike will turn off. When I bought the bike it wasn't happening but after about 2 hours of use it started happening. What I want to do is fix the bike to sell it but I don't want the next person to buy it with problems. It's the 87 with cool head. Let me know if you guys need any more information. On the motor it also says "WEBER" on it if that means anything to you guys.

I have never seen the piston hit the spark plug on a LT 500 unless the pieces of broken piston are hitting it.
Detonation will over heat the ground strap and sometimes burn the end off.
Detonation will over heat the center wire and cause the center wire to expand and break the ceramic cone surrounding it.
Detonation will cause the spark plug to come loose.
Detonation will eat through the head gaskets and o-rings.
Detonation will eat away at the edges of the piston and cylinder head.