Being an 'engine guy' and having raced..burned, broke many a 2 stroke motorcycle over the years...it's very easy to see what happened to your saw...even without getting a lope out and having a real look. Immediately I see two signs. Signs of detonation (preignition). Yes...very hard to tell on a 2 stroke until it fails if you cannot 'read' a plug properly with todays fuels. However...look at the photo up the cylinder. See the funny burn pattern? Less carbon in the intake side (cooler)..thats good, more on the exhaust side still OK....but look a bit closer...see the specs..the specs where the carbon is missing...the dot like marks. You ran this hot, and fast..but this was preignition that overheated the assembly and overheated (burned) the piston edge. There was more heat in that cylinder than you could cool off due to the ping. Look again at your piston photo. I know you took the photo to show a melted piston onto the rings..but look at the combusion pattern on the top..get your magnifying glass out..that's the key..that's what you should be looking at. On the exhaust side (of course..that's where the heat is), you can see the speckling again. Detonation has broken off the carbon deposits on your piston crown. The problem is..this 'just didn't happen' IMO. Sorry to tell you but look at the missing piston edge. Where did it go? It certainly isn't down the piston skirt. It's been burning off for awhile. Ping by ping. This should have shown up on your spark plug (don't just look at the colour...look for zits on it...speckles of carbon looking stuff..which is actually aluminum). As for a failure mode..well preignition for sure. I don't think getting the saw stuck (still don't know how) had much to do with it..other than some extra heat. This has been on a route to failure for awhile...at least for the last 10 - 20 minutes or so.
I think you'll be able to save that cylinder (if you're careful with the acid). I'd pull the crank and make sure there isn't anything, other metal debris down there. I'd then be checking your ignition timing. If that's fine and hasn't moved..then your fuel has water in it, is of too low an octane for your compression, or location, or (though I don't think so..without looking at your assembly under magnification) you just plane ran it too lean (lean doesn't usually = preignition though). Too much timing, or low octane like water or wrong gas, old gas.
Just my thoughts. I've only seen insides of various engines that look like this oh....say 250 times.....
Just looking at your photos again...did you run the proper amount of oil in your fuel? It's hard to tell from the photo but it looks like you have some galling on the piston pin? That's very hard to do...but could just be dirt from your fingers...or some other mark.
Kind of a lot of blow by for such a low compression engine. Are you sure this didn't have tons of hours on it..coupled with some preignition?
When you get it together....put a lope in your tool box to look at your spark plug (check for acne on the ceramic bit, electrodes).
Here's a new rule for you....If you're ever running an engine and all of a sudden it just decided to run really really great...remember to enjoy it since it's just about to fly apart. After a few failures you'll remember to shut it down pull the plug, get the lope out to read the plug.