do you mean squeezed out in an irregular hernia type way, or just that you can see the gasket evenly all the way around? this model is plagued with head gasket leaks, so it's a safe bet it's leaking. it's kinda ghetto, but you can roll up a bit of shop towel and put it next to the gasket leak, and just change it when you wash your bike. if it doesn't use much oil, just ride it.