Coolant runs through the water jackets in the cylinder and head. The o-rings stop the coolant from leaking in both directions. If the inner o-ring fails, the coolant runs into the cylinder and burns off. You then run out of coolant and/or overheat. This in turn can warp the cylinder/head/cook the other o-ring and then exhaust gases and oil/spooge can cross under pressure past both o-rings and out the head.
My first check would be to see how much coolant is in your bike. Next stop 2 new o-rings and check if the head and cylinder are still true. Piston dome should tell story if its been washed clean by coolant/overheated.