My moped is smoking bad and its not the premix system?

i just noticed my trans oil was low and added some nd30 oil, i pulled to overflow screw and got it to the proper level. i fired it up and OMFG its like a squad of navy seals set off a bunch of smoke grenades, i mean serious smoking, i smoked up my whole block and couldnt see anything. the smoking will not go away. my question is how is that 4 stroke motor oil getting to the top of the cylinder. i mean besides having bad piston rings are there any other seals or ways of it getting there? i checked the premix pump and its pumping good green oil. its a 50cc 2 stroker 1E41QMB. Thanks to anyone who can tell me or has had a similar problem. i am going to put a 70cc kit on it and if that doesnt work i need to know where to look next,