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Ok, heres my take on it from the other side of the country. If I was in your area I'd be more than willing to take a look at it. If you are 100% sure the piston looks ok, and it was not a lean seize, then something went in the transmission is my guess.
The rear wheel should turn freely with the scooter OFF and at idle. The belt will always rotate when the scooter is running, but the rear clutch assembly disconnects it during idle (and in the OFF position). BUT, if the variator is not returning back to its normal position, weird things happen as well.
So you either have something wrong with the clutch if its still "engaged" while OFF or idling (broken clutch spring(s)?), bell came loose-backed off, torque (contra) spring may have jumped the retainer cup. If you do burnouts, they kill a clutch assembly FAST! I know all to well.....
If the variator failed, it might be a v-slider cracked/broke, roller shattered and/or the variator nut came loose. Impact wrenches are no substitute for a proper holding tool and torque wrench.
Finally, if the reduction box final gears failed from improper spacing, the either ate the end bearing(s) and/or shattered, locking metal chunks INSIDE the reduction/gear box.
I have seen, and fixed, all of these at one point. I love Zuma's and we keep enough parts on hand to do full rebuilds of anything that can/will fail. Let us know what you find.
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