Looks like out of round cylinder to me, or undersized piston.
Get a set of telescopic gauges (cheap and nasty is fine, they all do the same thing) Google how to use them and get a half decent vernier caliper.
Measure the cylinder front and back, and side to side, it should be +/-0.02mm of whatever your stated bore diameter is (I'm on the toilet so you can do your own homework), then measure your piston diameter front and back just above where the break is, this should be 0.1mm max (roughly) from your bore measurement. If it's greatly different you may have had a bad piston or cylinder. Replace with correct tolerance (0.06mm for forged) and it'll run great so long as...
... You warm your bike up slowly and carefully, cracked skirts come from piston rock, which occurs when you thrash a cold engine, as the piston and barrel warm up at different rates... And...
You use a decent fuel oil ratio, I'm old school, not one study has proved less 2 stroke oil is better than more, EVER! Get that jetting right, check your reeds, use a decent mix (200s rev, be kind to it, 32:1 or more) and report back!