I'd still like to know what caused this... It's a $200 motorcycle... It'll probably end up getting torn down eventually due to whatever caused this problem! Borrowed time me thinks.
I'm betting rust on cylinder walls? When u turned it over the first time, u wedged the piston into the rust, then over time the atf mix, melted the rust enough to free up. Happened to me more than once, then upon teardown, find nothing but rusty cylinder walls.
Fire that thing up after setting all major tune up specs. Add some 2stroke oil, or marvel mystery oil to gas (helps free stuck rings), might smoke, might not?