2 Stroke Piston Orientation (Engine Failure)

Hello, my Name is Ryan. I have been a long time lurker on this forum for various engines but first time poster. I have an Earthquake MC43 2 stroke tiller which I was given that would not run at all, but had perfect spark. After draining the old rotten fuel, and replacing the carb, fuel lines/filter and spark plug it still would not fire on a fresh batch of fuel. I ran a compression test on it and it made 80 psi which I would have thought would have been enough, but still would not run even on starting fluid. After removing the exhaust and finding the piston and rings badly scarred, I tore it down and I'd like to hear a second opinion on the matter. Most of all the 2 stroke pistons I have done had instructions indicating that the arrow faces the exhaust side of a cylinder. This motor had the arrow facing the intake port, and the ring gaps and pins while not exposed to the exhaust port, were facing that side. I am certain that this piston was installed incorrectly from factory, and am assuming this is the reason for the failure, but without knowing the history I cannot say for certain. I have a new cylinder and piston I ordered from AliExpress ($20) on its way that appears to match the casting number and dimensions exactly, however I want to be certain I have the piston on the right side. There is no difference on either side of the piston skirt. Am I correct in thinking this engine was incorrectly assembled at the factory?