OK dude that is chronic detonation that has killed the piston. Detonation is the exploding of end gasses whereas normally the gas burns and heats up pushing the piston down re Boyles law (common myth that it explodes).
Ignition too advanced &/or jetting too lean. I'd bet ignition timing. Stator plate needs to be rotated in direction of flywheel. (anticlockwise). Std position mark is a good start, but as compression increases & an effective exp chamber is put on you may need to retard the ignition from this point.
The head is a non squish type, can work ok on small engines, but not ideal. erm little prone to detonation, but don't throw baby out with bathwater, there is another reason.
As far as CC you can only bore it out to like 104 else you have to keep a 24mm carb. If you want to run bigger you can go up to 125cc but the small carb will be a restriction you can't work around.
Don't you look at my accountant.
He's the only one I've got.
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