Its done... once the engine loses compression from the sanding of the piston and sleeve, it will only run while cold. This is because when cold the sleeve has not yet expanded and it runs with compression. Then once the sleeve expands the clearance is very loose and there is no compression when hot... same with a used motor.... I would not suggest trying to rebuild or pinch the sleeve because the crank is now scored and won't seal with the case, the bearing are probably very gritty aand shot and the p/s is worn... You can have it pinched, but then you'll have bearing and crank problems....

good luck...