First things first. And first you have to think about how a 2-stroke works. Every drop of the oil that you mixed with the gas goes through the engine, along with the gas, as it runs. That oil passing through is what lubricate all the pistons and bearings inside the engine. As the mix goes through, some of the oil burns (make smoke), and the rest goes out with the exhaust. What you are looking at is oil that has gone out the exhaust. But it certainly is excessive. That might mean it has sat with the gas tank line connected for a long time and the carburetor has not done a 100% job of shutting off the flow. So drop by drop, it has seeped into and through the engine. Another thing that might have happened is it was laid down with the carburetor full and it just dumped through. Third thing is the last time it was ran it might not have ran correctly, dumping unburned fuel out the exhaust.
Really, the bottom line is put it back together and run it (on a boat, on the lake). If it runs fine, you do not have a problem.
