Loose head nuts will cause the rings to leak. The mechanism is: uneven [mechanical] compression from one side of the crank to the other causes a flutter, a slight back-and-forth vibration, in the rotation of the crank, The crank weights will often carry it thru anyway (unless it is a lightened crank: these cranks DON'T fit in that category!) and this sudden acceleration change causes the rings to shift upward when it decelerates, then downward again as the cylinder fires - hence the term 'flutter'. Each time the ring(s) flutter, they pump oil upward. It doesn't take long for it to reach past 3 rings.
I went thru this exactly with a K4 engine back about 2008 or so. I was working at a place with a shop and they let me do the "bike thing" at night when there was enough floor space between machine projects (this was one of only 2 'perks' that job had, the other being free ammo...). They had a brand-new set of 'click' torque wrenches, so I thought I'd try them out. Big mistake: after I got the bike back together and went out for the shakedown ride, it vibrated a LOT for a CB750, and after 40 miles of trying to figure out what was wrong, it started smoking on pipes 1 & 3 - with new pistons and rings! After re-pulling the engine, despite having performed the [usual for me] torque-twice routine after 24 hours, there were several nuts on the left side of the head that were barely tight at all. I immediately suspected the 'new' torque wrenches, but re-pulled the top end and re-checked everything, even piston shape and cylinder bore roundness: nothing wrong. I brought in my trusty (1969 vintage) Craftsman beam-type torque wrench from home for the reassembly, and all was fine after that.
Later I tested those 'click' wrenches against the "old" beam wrench, measuring torques to 75% of full scale. The Chinko Harber Frate wrenches were 'off' more than 20% (smaller 18 ft-lb one) and almost 40% for the [larger, 40 ft-lb) wrenches I'd used, indicating MUCH higher torques than were actual at the 'click'. Lesson learned. Despite telling management about it, they continued to use them: I went along behind them and corrected their assemblies with my old one until it pissed them off, then I re-demonstrated it for them, a year later. They finally quit using them HF units then, and bought a Craftsman set. One night when we moved to a new building, I threw out the HF units. No one ever said a word about it, either.