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I assume the 250 is a wet sleeve? If it is there is a good chance the lower ring land is messed up where the o rings seal. This can be fixed but only with a lower counter boring and sleeve pressed and then machined to the org specs. The block has to be bare to do this. Then there is the what...

Liners just don't break you have more problems, Like everyone has said pull the pan. It shouldn't be hard to find the problem with that big chunk . I bet a used engine will be cheaper before your done.