That piston has some really bad build up on the exhaust side or you have very bad blow by on that side.
Did you have an exhaust leak perhaps instead of a or in addition to the head leak?
I'm going to guess you didn't clean up your ports at all before starting the bike... Maybe a phantom bad edge job on the exhaust port in the cylinder was left untouched from the factory. That would chew up one side of a piston and rings pretty fast.
You'll want to get a cylinder and piston, rings all that. I highly recommend bicycle_motor_works on ebay for that, you specifically need a type A piston and cylinder, there's a type B but you don't want that, the wrist pin hole is higher up in the piston, basically half way up, yours is below mid way.
He supplies a new cylinder, rings, piston, bearing, wrist pin, and clips. All good quality stuff, and willing to set things right should things go a funky.
Good luck.