You need a 'leakdown' test, not a compression test. A leakdown test will indicate ring condition.
It does seem as though it is piston ring/bore related. It is not difficult to break a ring, especially if the engine overheats or runs with too much ignition advance.
I am surprised you have 28 cc combustion chambers with what I think are flat-top pistons. The 28 cc chambers are for raised D-top pistons where the raised tops take up 4 cc of volume, so with flat tops the chamber volume should be c.24 cc (subject to measurement & calculation). Not that this has any bearing on the smoking.
The only real option is to remove the engine and strip the pistons out for inspection. I would bet you will find either a cracked/damaged piston, a broken ring or a badly scored bore.
Just a thought, but if the manifold has a leak it could have been running too lean and if it was retarded as well that would cause a build up of heat in the bores and thus, possibly, the damage.