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I doubt that it's crap in the gas that's your problem. The reason you mix oil with gas in a 2 stroke is to lubricate the engine. Without fuel, the engine got no lubrication, and my guess is you seized the top end.
Pull the head and take a look, you might be able to get away with a hone and new piston rings.
next time you run out of gas, whip in the clutch and coast to a stop.
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