Suggestions - losing oil in new motor

[JoeBlaster64]

New 240 motor , installed in back in November, rode it around a few times to break but no heavy balls out riding, put it away for the winter. Finally got time to get it out this week and was going to fine tune carb, plug chop, etc. Starts on second kick, idles great, good throttle response and noticed the oil in sight glass gone. Filler back up and gone again. Now it disappears in about a minute. It smokes some but not excessive compared to how fast the oil disappears. There are no oil leaks around head or seals, did a leak test all good and no oil dripping out exhaust. Plug a bit black but not dripping with oil.
Could 1 ring be bad and not the other ? Has good compressing but haven't done a compression test yet. Could the rings eventually set up or should I go ahead and pull the head and install new rings before any further damage ?

This Sucks, allot a time and money spent and I cannot ride on this glorious weekend !!!!

 

[Jimmer]

You pulled cover off to verify trans side crank seal leak tests ok?

 

[Awk08]

you are filling and checking the oil with the engine turned off ?
and allowing it to drain back into the clutch/sight glass area before checking it again ?

rings and compression have nothing to do with the trans/clutch oil, or it's disappearence, in a 2 stroke engine.
crank seals and external leaks do.

do another leakdown test to confirm the crank seals and that clutch side collar inside the seal are all still airtight ?
if it passes leakdown test, and it's not leaking out onto the ground ? ....
must be that houdini brand oil