300/440/550 Fuel out of 1988 js550 exhaust

Hi, glad to join the forums. But my first ski is a js550 that I picked off a guy for 500. After I bought it, I realized that he was not mechanically inclined, like at all. And found out he did everything wrong. For example, I had to replace the ebox because he got water in it and tried to cover it up by draining it out. But anyways, that's beside the point. I was getting no spark for a while. So I replaced the coils on the stator, that didn't help so I replaced the ebox. But STILL NO SPARK. So hopeless and confused, I pulled the stator and realized the flywheel broke the wires. So after I fixed that I got amazing spark. But it wouldn't fire. So the I pulled the stator again. Turns out, I put the coils on... Reverse ( facepalm ). So after I reversed them back, I advanced the timing a little ( I read it would go faster). But when I did that, my ski finally fired up. But I'm guessing that when I advanced it, I made the engine backfire when it ran. So when it was running and backfiring through the carb, I stopped because I didn't want to break it and I'm going to put the timing back to normal. But when I rolled it back to my garage, I noticed a lot of oil on the ground that spewed out the exhaust when I started it. It got everywhere. So I just need help and hope anyone has explanation of why this would happen. I'm guessing that maybe oil and gas built up when I would accidentally flood in when I would try to start it. Might I mention that it is stock. Hope anyone has an explanation to this. Thanks!

Before and after of my rebuild

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Every time you turn it over, the carb. is pumping fuel. When it doesn't start, that fuel has to go somewhere. Some will go to the bottom of the crankcase and some will go out the exhaust. If your timing is off, you are trying to ignite the fuel when the piston is not at the proper position during the stroke. This will often result in unburned fuel going out the exhaust port as well.
Needless to day, when you finally fire it up, all that fuel gets expelled out the exhaust and makes a mess. Pretty typically.

http://www.animatedengines.com/twostroke.html
 
OK thank you so much! Im going to adjust the timing again and it stopped spewing out gas. I can get it running for a few seconds and backfires and stops. So I'm guessing the timing is a bit off.

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