Ok so a broken Piston.
I examined the case and it seems some little metal shavings have made their way. I am going to flush the crank case out real good though when I drain, and re drain. I am hoping it will be enough.
The cylinder looks pretty well. Not chewed up or scored. I want to measure at my parents shop in the coming week to see what size piston to order.
What do you guys think?
Only thing that bothers me is the worn ring.
Draining the transmission oil will not remove broken piston fragments. The transmission compartment and the crankshaft compartment are not connected. If they are, your cases are broken and the cases need to be split to evaluate the damage.