Hi Chris....
In this case it was Cool Power Heli which is 21 or 22% oil.
The peeling of the cylinders and cams is nothing really new....it's a known problem that has been going on since at least 88' when I first became aware of the problem.

Right now...I have a letter in my hand that is direct from OS Engines in Osaka, Japan stating that they had never seen or heard of the peeling problem until they received the engine direct from myself.
(they sent a new engine direct which I sold immediately)

In addition....I also have in hand a letter from Clarence Lee answering some questions re this problem and he said he had seen at least three engines with the peeling problem and brought the matter directly to the OS factory "a long time ago".
Today....briefly....if it has a ringed piston.....it's ok..the liner is not plated....I can't imagine why....kaff...
If the cam on their 4 stroke engine is a bright instead of a dull finish....it is plated and should be avoided by trying to find a non-plated cam....these are available for the 91 Surpass if you look around.
The new design engines may or may not have plated cams but OS thinks the plating reduces or eliminates corrosion.....according to statements in the engine manual.
I strongly disagree.