It doesn't surprise me since this is an issue that I "preach about" often.
The motor obviously failed and was "rebuilt" but far too many only correct the "symptoms" of the real issue.
Yes, you have a toasted cylinder. But, what "caused" that - the cylinder is toasted because something (upstream) failed. Lack of oil via the fuel (whether injected or carb), bad water pump, blocked cooling passages etc.
If the rebuild simply addressed the bad cylinder but fails to correct the cause, then like you are experiencing right now, that fresh rebuild was all for not.
I certainly would go after the seller..