Sounds like a carb problem to me. Possibly the combination of a couple of things. Stuck float valve/float level too high, combined with a clogged overflow standpipe/tube. This would cause the float chamber to overflow, but with the standpipe clogged, the only place for the gas to go is into the cylinder.
Check that you can blow air through the overflow tube, check the float level heigt, and remove and clean the float valve. Also, check to see if your oil smells like gasoline. If gas has overflowed into the crankcase, you'll destroy the main bearings.