I discovered why the motor sealed, and it has nothing to do with jetting.
I drained the coolant because I wanted to look at the pistons, and this is what came out.
When I filled it up with coolant I filled it to the brim with dark orange coolant, that is a 1 gallon bucket with not even a 1mm thick layer of slightly orange water.
Its safe to say it over heated and seased, then when it cooled off the pistons broke loose and the rings were F***ed.
I havent taken the jug off yet, but I'm positive that's what happened.