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2nd ring seizure. Ring ends butt when hot and seize in the bore, breaking out the lands. Caused by improperly-gapped rings, or excessive heat (including detonation), or some of both. The OP may have found it (or at least the chunks in the pan) and buckled it back together to sell, as those aluminum chunks and ring bits would not migrate anywhere that they would be vaporized. Oddly, bore ring seizures may or may not leave damage or scoring in the bores, but something visible is usually left behind.

While they may have been oddballs the assembler missed, a check of the other ring gaps may give clues. Check the rods for straightness and cracks. If it's been running a while this way, the bearings may show some clues also. Some inspections and forensics on tear-downs helps to find unknown issues. Good luck!
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