I have one of these same machines and it seized also. Like this chap, the piston & bore tried to exchange metal surfaces.
I reckon all was done properly with this machine. It was taken to the Philippines to do a job on some of our dirt over there. We ended up not using it so when it came back home with us it was put into storage for about 3 years. Before we took it there to the Philippines, I asked the local machine shop (who are the agents for the Husky range of saws and cutters) to do every thing that might help it be perfectly operational. That included a max' Rev' check/setting and to get it all ticketie-boo. Yet, when I did liven it up for the 1st time since the shop had looked at it (with fresh fuel & oil mixture), it did about 5 to 7 minutes work and then seized.
What I had found, was that the open celled foam air filter element had perished during the storage time and then got sucked into the carb. It seized mostly on the exhaust side of the barrel.
On checking prices for a repair, it was only about a quart of the amount more in dollar terms, than a replacement machine of the same size! So it sits waiting for a miracle. It had been used quite a lot before this episode and it certainly was a grunty machine and once set up properly, it was a excellent machine to use, for quite some time, without back or arm strain,.....hence my reluctance (until now) to chuck it out. NO..... after reading all these comments, I think its time to send it to China so as they can make it into some other crap.
So from a Kiwi down under, thanks guys for adding all the comments to this topic. It obviously took quite some time to write it all up and its a shame that it was a costly blunder for you, but its saved me from a likely same fate, so.... thanks again.
Cheers