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Sounds like you have turned on the external cooling water prior to the engine being running. Without the exhaust pressure, cooling water is allowed to flow into the engine and saturate the lower engine block. This then gets sucked up in the 2-stroke cycle as if it were fuel and deposited into the cylinders. The owners manual has a warning about NOT doing this and it should also be on a PWC warning label somewhere near the external connection. The manual also cautions to turn OFF the water BEFORE turning off the engine. Of course I'm making an assumption here but the water has to be coming from somewhere.
The bigger issue now is it appears you have an engine block full of water. This means every moving part that requires lubrication has been saturated in water instead of the oil contained in 2-cycle fuel. You'll need to get all of that water out without damaging the crank, rod bearings and cylinder walls. I do not have an answer on to how to fix this new problem, but I'm betting someone has a video on how to resolve it.
As a side note, it is impossible to get an accurate compression reading with a liquid in the cylinders. The liquid could be masking compression leaks caused by worn rings or scoring in the cylinders. Dry it out and run the test again.
I can't over-stress how important it is to have a service manual and owners manual for your PWC. You can find one for free by doing a Google search.
 

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Discussion Starter · #3 · (Edited)
Sounds like you have turned on the external cooling water prior to the engine being running. Without the exhaust pressure, cooling water is allowed to flow into the engine and saturate the lower engine block. This then gets sucked up in the 2-stroke cycle as if it were fuel and deposited into the cylinders. The owners manual has a warning about NOT doing this and it should also be on a PWC warning label somewhere near the external connection. The manual also cautions to turn OFF the water BEFORE turning off the engine. Of course I'm making an assumption here but the water has to be coming from somewhere.
The bigger issue now is it appears you have an engine block full of water. This means every moving part that requires lubrication has been saturated in water instead of the oil contained in 2-cycle fuel. You'll need to get all of that water out without damaging the crank, rod bearings and cylinder walls. I do not have an answer on to how to fix this new problem, but I'm betting someone has a video on how to resolve it.
As a side note, it is impossible to get an accurate compression reading with a liquid in the cylinders. The liquid could be masking compression leaks caused by worn rings or scoring in the cylinders. Dry it out and run the test again.
I can't over-stress how important it is to have a service manual and owners manual for your PWC. You can find one for free by doing a Google search.
I
 

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I bought it like this lol i didn’t do anything
They didn't do you any favors then. Water can only get into a Yamaha PWC in one of 4 ways, but to come out of the cylinders continously while cranking its a sure sign that the block is full of water. It's going to have to be dried out some way before you can even start diagnosing its problems.
If it were mine, I'd order a complete set of gaskets and start tearing it apart, inspect everything and put it back together. Might as well replace the rings too if the cylinders aren't torn up. On the plus side, the engines not seized up.
 
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