1996 4 cylinder 2 stroke 120HP quit running

[Trekspyder1]

I now own a 1996 Bayliner Jazz with a Mercury 120 hp 2 stroke I/O jet drive. It ran great for 3 weeks. This weekend at WOT it just quit, as if I turned off the key. This happened 3 times within 10 minutes then would not start. I pulled both carbs, cleaned em, put it back into water, it ran for 4 minutes then quit. I can not get it to start. I'm not sure what to do next.

Here is what I've checked so far-

Full tank of gas
all 4 plugs spark
coils check good (CAPACITOR DISCHARGE MODULE RESISTANCE TEST. 1.3 Ohms)
both carbs are clean
fuel filter clean
New battery with 650 CCA


Thank you for any help you can provide.

Rich

 

[NHGuy]

Did the safety lanyard come off?

 

[Trekspyder1]

Did the safety lanyard come off?

Great question. no, still attached. thank you. (I added more info to original post, thanks NHguy)

 

[Trekspyder1]

UPDATE: I just pulled the fly wheel off. 5 of the 6 magnets are no longer attached and slid over. Would that make the motor stop running? Do they have to be in a specific spot? Also the Stator is rusty, should that be cleaned?

 

[Trekspyder1]

UPDATE 2: This update is for those who may have a similar problem. I found the "rev limiter" to be bad. Changed it and the engine runs perfect.